As domestic consumption is key to economic growth

The rapid recovery of household consumption and the high growth of infrastructure investment in the first quarter are the main driving forces for the economic recovery in the first quarter, Feng said, adding that resilient manufacturing investment and the diminishing drag effect of real estate investment have all boosted the economic growth.

Rising market demand is also playing a certain role in boosting confidence in manufacturing investment, which will remain resilient in the short term, the researcher said.

According to a research report by Great Wall Securities, GDP in the first quarter is projected to rebound to around 4.3 percent, of which government consumption expenditure and capital formation, important supporting forces for the economic recovery in the first quarter, will be about 0.8 percentage points and 2 percentage points, respectively.

As domestic consumption is key to economic growth, macro policies need to continue to boost consumption, stabilize investment and boost market confidence, Feng added.