"We believe Europe, as a place of profound economic talent and technical foundations, can overcome its difficulties and realise the growth of its economy," foreign ministry spokesman Hong Lei told reporters.

The Greek parliament on Wednesday approved 28.4 billion euros ($40 billion) in spending cuts, unlocking a much-needed 12-billion-euro payout from the European Union and the International Monetary Fund in the process.

The payout represents the fifth tranche of a 110-billion-euro aid package agreed last year with the EU and the IMF, and is crucial to preventing Greece from defaulting on its mammoth debts.

The parliament's vote, which sparked frenzied battles between rioters and police in Athens, helped ease mounting international concern over Greece's debt woes, and markets around the world rallied on the news.

But Hong warned that Greece's problems, along with difficulties faced by other countries, "indicate that global economic recovery is still unstable and uncertain."

Inflation in the country, which has been spiralling and has sparked fears of social unrest, is forecast to rise 5.3 percent in the first half, the State Information Centre said in a report, according to the China Securities Journal.

"Currently the slowdown in China's economic growth and rises in prices are both within a controllable range," the think tank said.

Inflation in the second half of the year may slow down to between 4.5 and 5.5 percent due to the government's tightening measures and international market conditions, it added.

"It is extremely unlikely that the slowdown in China's economic growth would turn into a hard landing, as long as the world economy does not slip into a second recession," it said.

The world's second-largest economy expanded 9.7 percent in the first quarter, slightly lower than the 9.8-percent growth rate posted in the final quarter of 2010.

The consumer price index -- a key gauge of inflation -- rose 5.5 percent in May, a near-three-year high.

Chinese Premier Wen Jiabao said this week it would be difficult to keep inflation under Beijing's target of four percent for 2011, adding that fighting rising prices remained a top government priority.

Stability-obsessed Beijing is anxious about inflation and its potential to trigger social unrest. It has been restricting bank lending and raising interest rates to stem a flood of liquidity into the economy.

The think tank suggested the central bank should use rate hikes more often in the second half of the year, given the actual deposit interest rate is now negative due to high inflation, the China Securities Journal said.