China's economic growth slowed to 7.4% in 2014, the weakest expansion in nearly a quarter century, and is forecast to slip further over the next two years, adding to headwinds for the global economy.
The numbers released Tuesday are still miles ahead of growth rates in major industrialized economies, but represent a sharp decline from China's sizzling double digit expansion in previous years. That adds to pressure on the country's communist leaders as they try to prevent a sharper slowdown and job losses while overhauling the economy.
The 2014 performance was the slowest for the world's second-biggest economy since 1990, when growth tumbled to 3.8% after China faced economic sanctions because of the Tiananmen Square crackdown. It fell short of the official full-year target of 7.5%, the first miss since 1998, according to analysts.
Economists expect the slowdown to deepen, clouding the outlook for the world economy as China downshifts from an era of supercharged growth that fueled demand for everything from Australian iron ore to European luxury goods.
In a report Tuesday, the International Monetary Fund trimmed its global growth forecasts for this year and next year, citing China's weakness as a key factor. It said China's growth rate would fall to 6.3% in 2016. China's weakness will inhibit growth in nations it imports from, especially in Asia, the report said.
