Zhu Hongren, a spokesman for the MIIT stated the government is targeting 8% GDP growth this year.
The Chinese economy expanded by 8.7% last year while industrial production increased 11%. The target for industrial growth this year remains the same at 11%.
Zhu said that this year’s overall economic environment is better than last year’s, but warned of challenges and difficulties ahead.
"A high base figure is limiting strong growth in domestic demand this year. The outlook for exports is not optimistic because of weak external demand," he said, noting that the recovery is being primarily driven by government-directed investment.
iMarketNews. com reported he warned that: "Private investment is not strong while local governments are having difficulties raising funds. The effect of the stimulus policy in boosting consumption and investment is weakening."
He also said that Chinese companies are facing rising cost pressures as raw materials and energy prices approach pre-crisis levels.