OECD Sees Growth on Upswing

China's economic growth is expected to pick up to 8 percent by the fourth quarter after a slowdown in the first half of 2013, the Organization for Economic Cooperation and Development said on Tuesday in its latest assessment.

"Growth in China has seemingly passed the trough and looks set to recover further in the second half of this year," said Jorgen Elmeskov, the OECD's deputy chief economist.

China's low inflation provides scope to ease monetary policy if needed, but strong credit growth suggests the need for caution, he added.

Elmeskov also emphasized the need for deeper structural reforms in China to maintain stable growth.

"The investment rate has come down and other demand components need to take up the slack. To achieve that, structural reform is needed.

"For example, financial and social welfare reforms can help alleviate the problems of savings, and reforms of State-owned enterprises can provide the government with revenues other than taxes," he said.

The Chinese economy has shown signs of recovering, with the manufacturing Purchasing Managers' Index reaching a 16-month high in August, according to a report over the weekend.

In response to encouraging economic data in August, many investment banks and economists have raised their growth forecasts for China's economy.

For example, China International Capital Corp lifted its full-year forecast to 7.5 percent from 7.4 percent previously.