BEIJING - CHINA'S annual economic growth will reach about 6.5 percent in the first half, up from 6.1 percent in the first three months, a government researcher said in an commentary published on Wednesday.

Fan Caiyue, who works at the economic research institute under the National Development and Reform Commission, China's powerful economic planner, said the authorities should not change their policies for now.

'The macro economy will gradually resume growth,' Mr Fan said in an article in the official China Securities Journal.

'But we cannot be overly optimistic about the current recovery. Whether the Chinese economy truly picks itself up from the floor and embarks on a new round of growth will depend on the recovery of the global economy and tackling some deep domestic issues that hobble growth,' he said.

Mr Fan's projection points to year-on-year gross domestic product growth in the second quarter of about 7 percent.

Guo Tongxin, a government statistician, said in remarks published on Tuesday that China's annual growth will probably accelerate to close to 8 percent this quarter.

Mr Fan said China should firmly stick to its current loose monetary stance and active fiscal policy.

China is still suffering insufficient demand, falling exports and weak private investment, he said.

'If we change policies too early to fight inflation instead of deflation, the economic recovery will not be sustained,' he wrote. -- REUTERS