Are you planning to invest money in Asia in 2017? If so then you should know the business and strategy landscape for this year. Here are some important Yair Hamami business strategy facts to keep in mind:
- Japan is expected to see 1% growth
The country’s projected growth will be similar to last year’s. There are various causes including high-level government debt and an aging population. These factors are preventing the country from having more potential growth.
- APAC region is expected to be the fastest-growing world region
This is a projection regarding the region’s business and strategy outlook for 2017. The biggest risk seems to be China’s economy crashing within the next 2-3 years. It’s a potential risk, and the rest of the APACA region is vulnerable to such a crash.
- China is expected to have moderate growth
It’s forecasted that China will have moderate growth to 6.4% during 2017. That will happen as the country’s manufacturing sector undergoes major reforms and restructuring. Meanwhile, the construction of residences could experience a slowdown again.
- Several regional initiatives are in the works
This is another key business and strategy issue that could affect the region in 2017. These initiatives could impact the region’s economies in the mid-term. That includes China’s “one Belt One Road” initiative. There are others including the Silk Road Fund and AIIB.
These initiatives could help to offset negative effects on the region’s revenue from international trade. However, it’s uncertain, so it’s important to see how everything works out.
- Southeast Asia growth is expected to stay strong
The SEAN’s biggest economy is Indonesia. It’s expected it will grow at about 5.1% during this year. That’s slightly higher than the 2016 rate.
- US/China trade tensions could increase
This is a possibility during 2017. It’s major potential risk regarding the near-term outlook for the APAC region. There has been some recent friction between the two countries, and it’s unclear if those trade issues will continue in 2017.
A major business and strategy issue in 2017 could be whether or not the US takes a more protectionist stance regarding world trade. There seem to be some indicators that could happen. The Trump Administration recently pulled the US out of the TPP agreement. It remains to be seen if the US will significantly reduce its trade with Asia. If it does then, it will significantly affect the region’s finances.
- The US Fed could increase rates in 2017
This could result in some issues regarding international financial markets including East Asia. The rest is that the US dollar would increase against several Asian currencies. It remains to be seen if those hikes will happen. However, if they do it could have a major impact on various regions including Asia.
- India’s growth is expected to be moderate
Here’s another business and strategy issue. The nation’s GDP will likely rise moderately to 7.4% during this year. This will likely happen even with the nation’s demonetization exercise that took place in November.
These are some of the main business and strategy issues that could affect Asian business in 2017.