Gross Domestic Product is on target to grow by 6.8 percent in the first quarter, according to the National Academy of Economic Strategy.

“Despite downward pressure, China’s economy has been operating in a good state,” an academy researcher Wang Hongju told the state-run news agency Xinhua. “The focus of macro-economic policies should be put in supply-side structural reforms to boost potential output in the long run.”

A rise in factory-gate prices, a recovery in company profits and increasing imports contributed to the year-on-year growth.

The academy forecasts 6.7 percent growth in year-on-year terms for the first half of this year.

The economy expanded by 6.7 percent in year-on-year terms last year. It was the slowest pace in 26 years. The Government’s growth target for this year is 6.5 percent.