A Cushman & Wakefield Research Publication - 2017 Global Forecast

GLOBAL

AMERICAS

APAC

APPENDIX

EUROPE

APAC

ECONOMIC DRIVERS Economic conditions will continue to improve throughout Asia Pacific, with the region’s powerhouses anchoring growth for the foreseeable future. In China, look for a steady near-term outlook to persist, with consumption as the main growth driver, aided by fiscal and monetary support, as well as economic reform ( special feature on Greater China highlighted on pg. 42 ). In Japan , the improving external sector, ultra-loose monetary policy, and strengthening labor market will support economic activity. A resurgence in external demand will buttress regional trade and, in turn, spur export-oriented economies in the region. While a boom is not in the cards, stronger global and regional trade will support better economic growth in Singapore and Hong Kong . In South Korea , newly elected President Moon Jae-In has plans to boost job growth and support consumption, improve relations with North Korea, and address the concentration of power in large conglomerates, or chaebols. Australia’s economy also stands to get a lift from a promising investment outlook, supported, in part, by the government’s infrastructure program along with healthy fundamentals.

In the emerging markets, the Philippine and Vietnamese economies will remain among the fastest-growing in Asia Pacific. Favorable demographics, a stable business process outsourcing (BPO) industry and overseas foreign worker (OFW) income—as well as an infrastructure boom—will be key to the Philippines’ positive outlook. Vietnam’s young population, surging export manufacturing and robust construction activities are likely to underpin solid growth in its economy over the next few years Investor confidence in Indonesia received a shot in the arm after Standard & Poor’s (S&P) returned the country’s government debt to investment grade (BBB-), after a tax amnesty boosted the nation’s coffers. Reforms are spurring a turnaround in the Indonesian economy after growth hit a six-year low in 2015. The upgrade should help raise investor confidence across most asset classes, including real estate. Similarly in India , the introduction of the long-awaited goods and services tax (GST) on July 1, along with other reforms, have also enhanced the investment climate. These policies will help India maintain its status as the world’s fastest growing large economy, with GDP growth north of 7%, although China will not be far behind.

34 / Cushman & Wakefield

Made with