BEIJING - China's economy will expand 7.8 percent this year, slightly above the set target of 7.5 percent, Bank of China (BOC) forecast in its latest report.

In 2013, economic growth will experience a mild pick-up to around 8 percent, but recovery momentum will remain weak as factors that have supported China's torrid growth in the past three decades are "undergoing significant changes," the report said.

BOC noted that China will see waning dividends from its labor force, market reforms and globalization in the coming years, and it will take time for China to restructure its economy from one dependent on export-driven growth to one powered by consumption.

However, a new round of reforms will offer fresh advantages to China's growth, the BOC added.

Given such factors, the report said China will maintain growth ranging from 7 percent to 8 percent in the coming few years.

BOC also forecast that China's consumer price index (CPI) will grow around 3 percent in 2013.

China's economy expanded 7.4 percent year on year in the third quarter, slowing from 7.6 percent in the second quarter and 8.1 percent in the first, according to data from the National Bureau of Statistics.