The International Accounting Bulletin (IAB), a UK-based publication covering the professional services sector globally, recently asked Baker Tilly International Asia-Pacific Chairman Sim Guan Seng for his economic predictions for the Asia Pacific region in 2017. His views were published in the February 2017 issue. We’re pleased to share an excerpt of Mr Sim’s original quote here:
“2016 concluded on a bearish note, and with the geopolitical and economic uncertainties shaping up in the new year, most projections for 2017 have been gloomy. With China and India as the biggest drivers of growth in Asia Pacific, any drastic decline in their economies could potentially drive down markets in the region.
That being said, Asia Pacific has been one of the fastest growing regions over the past few years and I believe that it will keep up its momentum in 2017.
Here’s why: Although China’s economy is expected to slow down this year, its GDP growth has been projected at 6.5% by the World Bank, which is still a stable and sustainable rate. In spite of a slight growth slowdown in 2016, India is expected to retain its position as the world’s fastest growing major economy with a positive GDP growth rate of 7% this year. Furthermore, the ASEAN nations are strengthening their economic integration and intra-regional trade, and becoming less dependent on trade with the west. All these are contributing factors toward a positive outlook for the Asia Pacific region in 2017.
Being in the professional services sector, we’re anticipating an increase in intra-regional transactions. One example is the upward trend of mid-market M&A deals within Asia Pacific, which looks set to continue this year. At the same time, we foresee a rise in demand for cross border tax advisory services, partly due to the proliferation of start-up companies in the region in recent years. With the network of 24 Baker Tilly member firms in the Asia Pacific region, we’re working collaboratively to grow our business and identify new opportunities. Our member firms are also diversifying, and looking for new services and expertise to offer clients.”