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Technology, media & telecommunications Home
International Business Report (IBR)
TMT outlook: Can tech spend buoyancy keep the industry airborne?
Uncertainty is mounting for technology, media and telecommunications (TMT) businesses amidst a turbulent economic and political backdrop, according to the latest research from Grant Thornton. But with businesses in other industries increasingly looking to new technologies as the path to transformation, this is also a time of opportunity. So how can the TMT industry ride out the turbulence and thrive?
- China ranks 14th in Grant Thornton Global Dynamism Index 2015
Grant Thornton Global Dynamism Index (GDI) 2015
According to the latest survey result of Grant Thornton Global Dynamism Index (GDI) 2015, China ranks 14 among 60 leading economies, above many other developed markets such as France (23=) and the UK (27).
The Grant Thornton Global Dynamism Index (GDI) assesses the business growth environments of 60 leading economies in the world, and judges the development potential of each economy through the changes of related index. The assessment is based on five categories which are likely to lead to a faster future rate of growth, including science & technology, labour & human capital, economics & growth, business operating environment and financing environment.
Economic growth and labour index lead the world
Improved private consumption helped lift the country to top of the GDI in the area of market growth, though the recovery of the global market is still slow. Meanwhile, improving labour productivity and low unemployment helped the economy rank 2 for labour market. Technological infrastructure (16) is another area in which China outperforms other countries due to high IT spending and investment in research and development.
However, there is room for improvement in the dynamism of the business operating (48) and financing (44=) environments. Business operating environments include foreign trade foreign exchange regulations, private enterprise policy, political stability and other risks of laws and regulations; financing environments include financial supervision system, merger and acquisition growth, enterprise direct investment growth, enterprise tax burden, etc.
Xu Hua, CEO of Grant Thornton China, said: “the speedy development of science and technology in the past 10 years, such as 3D technology and the forthcoming pilotless automobile, presents challenge to traditional labour. However, the role of skilled labour in the global economic development remains essential. Most industries still need a lot of labour to make profits. China's stable labour market ensures a healthy economic development. But we should keep on optimizing our business operation and financing environment to create better development environment for enterprises. ”
Singapore ranks top
Globally, Singapore (rank 1) leads the GDI 2015. It ranks top for financing environment and no lower than 25 in any other growth area, highlighting the country’s robust, broad-based offer to dynamic businesses. Israel (rank 2) has also risen six places this year. It comes top for technology due to strong research and development spending. Australia (rank 3=) drops two places but still ranks in the top five for business operating environment and labour market. Finland (rank 3=) and Sweden (rank 5) have both risen slightly, due to their favourable business operating environments and an advanced technology infrastructure.
Xu Hua, CEO of Grant Thornton China, said: “Market entry decisions are some of the toughest a business leader ever has to face. There are so many factors - both known and unknown - to consider. Uncertainty about what lies ahead can make it hard to make the case for action to colleagues and funding partners, and to manage risk effectively. The GDI can be used as a tool to help identify countries of interest by drawing on 22 indicators in five aspects. Entrepreneurs can use GDI for reference when looking for overseas expansion.”
