China's economic growth slipped to its weakest level in a quarter century in 2014, though growth in the final quarter came in higher than expected, amid nagging problems of overcapacity, a weak housing market and lower global demand.

China's gross domestic product grew 7.4% last year, within range of the government's target of about 7.5%, the National Bureau of Statistics said on Tuesday. The expansion for the final quarter of the year was 7.3%, matching the third quarter level and beating market expectations of 7.2%.

While the growth rate was well above that in all other major economies, it was down from the 7.7% growth of 2013 and the double-digit levels achieved as recently as 2010. It was China's worst performance since the 3.8% growth recorded in 1990, the year after the crushing of pro-democracy unrest in Beijing's Tiananmen Squared led to Western sanctions, swooning domestic and international confidence and an ideological lurch to the left.

The slower growth, which Beijing has called a "new normal," was recorded on the back of higher, targeted spending on needed infrastructure in areas such as railways and subways and after the central bank cut interest rates for the first time in over two years and ordered bank loans be directed to farmers and small businesses.

Given that, the absence of more vigorous growth has raised questions of whether Beijing will need to take more aggressive actions in 2015 to maintain an adequate expansion to provide enough jobs.

"This year will look very much like last year, only worse," said Andrew Polk, economist at the Conference Board. "I expect authorities to continue to try to lower the cost of funding to key market players pinched by the slowdown."

On Monday, Premier Li Keqiang said there was considerable downward pressure on the economy though he described the 2014 performance as "within a reasonable range."

The weakness in the economy was seen in a number of areas, particularly the manufacturing sector where industrial output rose 7.9% in December, though that was up from 7.2% in November. It came in at 8.3%.in 2014 and 9.7% in 2013

Sales in the key property market were down 7.8% for all of 2014.

Retail sales, however, were a relative bright spot, climbing 11.9% in December after a rise of 11.7% in November and gaining 12.0% for the whole year compared with 13.1 in 2013. Beijing's policy makers can point to relatively strong consumption as a sign that growth is becoming less dependent on government spending.

Liyan Qi