FGV Annual Report 2016

FELDA GLOBAL VENTURES HOLDINGS BERHAD 12 WHO WE ARE & HOW WE CREATE VALUE MACROECONOMIC & INDUSTRY OUTLOOK IN 2017 GLOBAL MACROECONOMIC CLIMATE Global Gross Domestic Products (GDP) growth softened to 2.4% in 2016 before recovering to 2.8% in 2017; growth in Asia, and especially India, continues to be resilient. Sources: OECD, BMI Research MARKET LANDSCAPE 2016 : 1.6% 2017 : 2.0% USA 2016 : 1.7% 2017 : 1.6% EU 2016 : 1.0% 2017 : 0.8% JAPAN 2016 : 6.7% 2017 : 6.3% CHINA LATIN AMERICA MENA INDIA MALAYSIA 2016 : -1.9% 2017 : 1.7% 2016 : 1.6% 2017 : 2.4% 2016 : 7.0% 2017 : 6.9% 2016 : 4.1% 2017 : 4.7% ASEAN 2016 : 4.8% 2017 : 4.9% USA & EUROPEAN UNION (EU) CHINA FINANCIAL MARKET MIDDLE EAST AND NORTH AFRICA (MENA) • Greater risk of protectionist policies from the USA • Brexit created high uncertainty for political & economic environments • Ongoing challenges while rebalancing economy from manufacturing to consumption services • Forex volatility & interest movements • Disconnect between rising bond and equity prices • More private & public sector investment plans