CH. 3 Corporate Governance
51
Industry Overview
3.7
According to the newest research report from International
Monetary Fund (IMF), global economic activities continued
to grow in 2015 and GPD had reached 3.1%, and the global
economy may further improve in 2016 to 2017. The estimated
global economic growth rate in 2016 is 3.4%, and is expected
to rise to 3.6% in 2017. IMF believes that the worldwide
economic growth is expected to become even slower in
the future, especially in emerging markets and developing
countries. The growth rate in developed countries will
continue to be moderate and uneven, but the export gap
will gradually decrease. The economic outlook in emerging
markets and developing countries differ greatly, but many
economic factors face harsh challenges. China's economic
growth has slowed and reached a steady adjustment period,
the prices of commodities have dropped significantly, and
pressure from some large-scale emerging markets will also
pose negative influences on the 2016-2017 global outlook.
Nevertheless, IMF believes that the global economy is
anticipated to rebound in 2016-2017, and this is mostly
because the growth rates of countries currently facing
economic downturns will gradually improve in the future.
According to statistics from IMF, the global economic
growth rate in 2015 was 3.1%, in which the growth rate had
been 1.9% for developed countries, and 4.0% for emerging
markets. IMF anticipates that the global economic growth rate
would be 3.4% in 2016, and the growth rates for developed
countries and emerging markets would be 2.1% and 4.3%
respectively. Due to the nature of our industry - engineering
consulting services, it is highly correlated with the target
market's overall economic conditions. This is primarily
because most business opportunities arise from local
government investments and consumer spending. Hence, the
conditions of economic growth in each target market would
directly reflect the amount of business opportunities in that
market. The chart below is an estimation of the economic
growth rate of the Company's target markets. Overall, most
primary markets show positive forecasts in this year. Certain
markets' economic growth rates in 2016 are higher than last
year's, such as Taiwan, Singapore, Indonesia, Thailand, India,
the US, UAE, Qatar, and Kuwait and more. Certain target
markets maintain higher growth rates than the global average,
especially China, Indonesia, Vietnam and India, which
are forecasted to have 5% or above of economic growth.
Therefore, CTCI will maintain a cautious and active attitude in
grapsing various opportunities in each target market.
Global economic growth rate
would be in 2016
Global economic growth rate in 2015
3.4
%
3.1
%
