China economic growth lower than forecast

China's economy, the world's second-largest, has slowed and performed worse than many analysts expected in the first three months of the year.

Annual growth was 7.7% in the January to March quarter, compared with 7.9% in the previous three months. Analysts had forecast a figure closer to 8%.

China wants to spur growth after it hit a 13-year low in 2012.

Other key data on Monday also came in lower than market expectations, raising questions over the outlook for growth.

Industrial output rose 8.9% in March from a year earlier, much lower than analysts' targets of 10%.

Meanwhile, fixed asset investment, a key driver of China's growth, rose at an annual rate 20.9% in the first three months of year. Analysts had expected growth of more than 21%.

"The Chinese economy is showing soft growth momentum in the first quarter," said Wei Yao of Societe Generale. "All these figures showed that the economy is in a weak recovery."