CHINA’S economy grew at its slowest pace in more than two decades in 2014, a performance that underscores the depth of challenges facing the world’s second-largest economy.

    Gross domestic product grew 7.4 percent in 2014 to reach 63.65 trillion yuan (US$10.4 trillion), compared to the previous year, the National Bureau of Statistics said yesterday. That’s below the government’s 7.5 percent goal and is the slowest growth rate since 1990.

    The uninspired results were expected, and China had signaled it would tolerate growth that was slightly below target. China is still growing more rapidly than any other major economy.

    GDP growth in China remains the most comprehensive gauge of the country’s economic health — an important number to watch as the government works to reform the world’s second-largest economy and shift to consumption-driven growth.

    China averaged economic expansion of around 10 percent a year over the past three decades, pushing it up the list of biggest economies and boosting household wealth. But now, the pace of growth is languishing — China recorded GDP growth of 7.7 percent in 2012 and 2013, a marked slowdown from 9.3 percent in 2011 and 10.5 percent in 2010.

    China continues to face a number of long-standing risks, such as ballooning government and corporate debt and a weak property sector.

    In the face of a sustained downturn, the government has deployed incremental measures to boost the economy.

    The Central Government has accelerated infrastructure projects, cut interest rates and tried to bolster the flagging property market.

    Other efforts to support the financial markets have largely flopped — a much-hyped pilot program to connect the Hong Kong and Shanghai exchanges has attracted relatively little investor interest.

    Experts say a drop in global oil prices will provide a miniboost to China. Costs will be lower for consumers and businesses, and the government should have more room to carry out reforms.

    (SD-Agencies)

    (Related story on P6)