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China will be reforming its economy at a pace faster than what people have expected, said chief economist Blu Putnam of the London-based Chicago Mercantile Exchange (CME).
In his fearless forecast, Putnam pointed to the Chinese government's shifting focus to market-based initiatives as a positive indicator that accelerated economic reforms are underway. Essentially, that's taking the path toward liberalization and away from the previous stringent regulation of the economy.
"We will be seeing a lot of market-oriented reform, more investments, particularly in the futures market, and Chinese investors will have better linkages with the global markets," Putnam said in an interview with Xinhua. CME Group's latest global economic outlook report predicts that China's transition to a domestically demand-driven market will likely succeed if consumers are given greater price flexibility and resources and capital are allocated efficiently.
Based on data analysis, China is forecast to have a 6.5 percent economic growth in the next decade. This is much slower growth rate compared to the 10.5 percent growth rate in the past ten years. The slowdown, however, is considered to be just part of the natural process of maturation into a highly industrialized economy.
CME also predicts a faster rate of normalization for the Chinese currency and that the RMB will become a major global currency.
