China's economy is operating within a reasonable range, Chinese Premier Li Keqiang said on Tuesday.

With economic growth at 7.4 percent, better employment and a 2.3 percent inflation rate in the first half of the year, the country is on track despite fluctuations in some economic indicators, he said, speaking to entrepreneurs ahead of the Summer Davos in north China's Tianjin Municipality.

It is inevitable for the Chinese economy to experience short-term fluctuations, such as those seen in electricity consumption, shipment volume and lending, while still operating within reasonable range, he said.

The global economy is experiencing a difficult recovery with some key economies showing sluggish performance. China's economic development has problems as well, he said.

The government will continue to maintain stable and consistent macro-economic policies, Li said, adding that key economic targets set for this year can be achieved.