The country's power demand, a barometer of its economy, will continue to fall in the first half of this year before picking up in the third quarter, according to an industry association.

"Power demand is likely to see a continuous decline in the first half. The first two quarters will be the most difficult time for the industry," China Electricity Council (CEC) forecast yesterday.

From the end of the second quarter, power demand may start to increase, compared with last year, in north and east China as well as the southern coastal regions. That should in turn drive up demand in the central and western regions in the fourth quarter, it said.