China Business News: Economy Slumps to Lowest Rate Since Tiananmen Square Sanctions

The Chinese government announced Tuesday that its economy has slumped to its lowest growth rate in 24 years.

The world's second-largest economy grew 7.4 percent in 2014, missing its targeted 7.5 percent growth, Reuters reports. It is the slowest growth rate since 1990 after the Tiananmen Square sanctions. In 2013, the country expanded 7.7 percent.

Previously, the country experienced growth at double-digits, but with lowered property prices and heavy debts strangling companies and local governments, the growth pattern slowed.

"The end of the high-speed growth era does not spell an end for China's economy." the official Xinhau news service said according to Reuters.

The International Monetary Fund's chief economist Olivier Blanchard said slower growth for 2015 shows a healthy and welcome decision by the Chinese government to refocus the country's economy toward a consumption-based growth model, rather than a heavy reliance on government investment and state-owned heavy industry.

Posted data shows factory output rose 7.9 percent and retail sales rose 11.9 percent, both above market expectations.

Fixed asset investment lowered to 15.7 percent, a near 13-year low.

In a statement to the BBC, Frederic Neuman, co-head of Asian economic research at HSBC said the Chinese economy is more resilient than expected. "Although, at 7.3% last quarter, growth isn't as spectacular as over the past decade, it is still among the world's fastest."

The government report also showed China had 1.37 billion people by the end of the year. This number is up 0.52 percent from 2013. Nearly 55 percent of citizens were urban residents, demonstrating a shift in recent years from a majority rural society to a majority urban. Disposable income for urban residents rose 6.2 percent, it grew 9.2 percent for rural residents

Real estate investment experienced a five-year low and new construction declined.

The IMF predicts China's economy will grow 6.8 percent in 2015, down from its earlier forecast of 7.1 percent. They also anticipate a growth of 6.3 percent in 2016, down from 6.8 percent.