A year of volatility has seen Western economies in the doldrums while Asia's, particularly the Pacific Rim, have strengthened. Today's CPA Congress will offer insights into how business professionals need to think and act to ensure their organisations thrive in this new landscape.
Changes in Asia mean Singapore's economy is expected to grow 3-5 per cent. Things also look good for India, which grew 6.5 per cent last year, according to the CIA World Factbook. Goldman Sachs predicts India's GDP growth will be 8.5 per cent this year.
Closer to home, the mainland announced a 9.6 per cent year-on-year GDP growth in the third quarter, the slowest this year. It grew 11.9 per cent year-on-year in the first quarter and 10.3 per cent in the second. China's star continues to rise, however, as it overtook Japan as the world's second-largest economy.
Hong Kong took a hit amid the financial crisis with GDP declining 2.8 per cent last year according to the factbook. However, Goldman expects the city to rebound to 4 per cent this year.
But Theresa Chan, PricewaterhouseCoopers' (PwC) partner and CPA Australia's president for Greater China, remains buoyant, saying: 'China and Hong Kong's growth is still on track', because mergers and acquisitions and initial public offerings are still occurring.
However, she notes that because of the credit crunch, 'Western governments have been printing more money and raising taxes', so tax accountants will benefit because more will be needed to ensure compliance while resolving issues of transfer pricing and double tax agreement abuse.
Tim Lui, a senior PwC tax partner, believes events have unfolded well. 'China is a significant player on global markets and I'm confident we will continue to see China emerge as a substantial economic force - particularly in Asia,' he says. 'Getting the 'economic journey' right for China is very important. What's more important is China keeps growing in an orderly manner, and gears itself for the opportunities that will come its way. It needs to be ready.'
