There is a sense of economic optimism for 2018. The traditional see-saw scenario – where one set of markets accelerate whilst the other experiences a slowdown in growth is apparently broken, with emerging markets, as a whole, set to accelerate whilst developed markets continue to provide stable growth. The strength of fortunes of emerging markets this year are based upon structural domestic reforms, strengthening commodity prices and stable demand from developed markets.
However, 2018 is also not without its challenges for developing markets, with interest rate hikes and protectionist policies in developed markets – which have added to inflationary pressures and elections in certain key emerging economies, posing checks to growth. While it may not be easy to generalize the fortunes of emerging markets across regions, in particular due to the differing stages of their reforms, varying monetary policies and deficit levels across the growth economies, we hope that PwC’s ‘Growth markets insights’ will be able to provide you with a holistic perspective on the business and tax environment in whichever growth economy your focus is in 2018.
Peter Le Huray
Global Tax & Legal Networks & Markets Leader, PwC Singapore