It’s no longer a given that China will become the world’s largest economy

ECONOMISTS and Wall Street analysts have been disappointed in China’s economic performance, holding out hope that this might prompt the government into a stimulus effort similar to the one seen in 2008.

This, in turn, would reinvigorate domestic growth and restore China as a key engine of global expansion. However, the more likely scenario is continued weak growth.

The primary policy question now is how quickly the government will shift away from stimulus measures to a faster fundamental overhaul of its growth strategy.