Weak consumption and exports coupled with slower factory production and investment will further keep China's economic growth subdued in the first three months of the year but is expected to stabilize in the next quarter.

According to the National Academy of Economic Strategy, a government think tank, China's economy will grow by around 6.7 percent in the first quarter, which is slower than the 6.8-percent expansion registered in the fourth quarter of last year.

Like Us on Facebook

With the slowing economy caused by weak consumption, the National Academy of Economic Strategy expects consumer prices in the country to increase by just around 2.2 percent in the January-March period.

The institution, however, expressed confidence that China's economy will be able to gradually stabilize in next quarter, backed by the government's pro-growth policies.

Economic growth in the second quarter will be about 6.8 percent on the back of stronger monetary and fiscal support, the institution said.

"It is likely that the economy will remain on a stable track as China's pro-growth policies gradually bedding in," the institution said in its report.

The government think tank's forecast for this quarter and the next is still within the economic growth target set by the government for this year, which is at 6.5 percent to 7 percent.

According to the official Xinhua news agency, China has targeted an average annual growth rate of at least 6.5 percent through 2020.

China's economy has been slowing down as the country seeks to transform from a production-based to a consumption-based economy.

In February, China's manufacturing sector continued to contract and at a faster pace, with purchasing managers' index (PMI) score of 49.0, according to the National Bureau of Statistics.

While several institutions have warned a further slow down of the economy, respected institutions such as the International Monetary Fund continue to express their bullishness on the Chinese economy.

TagsChina economy, China GDP