China's economy is expected to be back on the path of full recovery in the second quarter, with the quarterly GDP likely to grow by 10.7 percent year-on-year, the State Information Center said.

The center made the projection based on rising momentum in industrial production and demand.

Due to the tail-raising factor from last year, the risk of price hikes in the second quarter still exists. The report predicts that the consumer price index, the main gauge of inflation, will grow by 4.2 percent, and the producer price index, a major measure of inflation at the wholesale level, will increase by 7 percent in the second quarter.

The report suggests tightening the management of liquidity and strengthening control over investment in new projects. It also suggests broadening the range of yuan exchange rate fluctuations and implementing favorable policies in agriculture.

Source: China Daily