JAKARTA, March 1 — The Asia-Pacific’s economy is expected to pick up in the short term with gross domestic product projected to expand by 3.1 per cent this year from 2.6 per cent in 2022.
According to the APEC Policy Support Unit, the upside opportunities are coming from increased private consumption, targeted fiscal support and the reopening of borders and businesses.
Downside risks include inflation, higher interest rates and debt, reduced investments, geopolitical issues and new waves of Covid-19 continued to weigh on recovery but have moderated, it said in a report.
On APEC’s trade growth, the unit’s director Carlos Kuriyama, in a statement today, said he expected ‘a modest growth of trade volumes this year, following the slowdown in global demand’.
The volume of APEC’s merchandise exports was flat in the first nine months of 2022 and merchandise imports grew by 4.3 per cent versus the same period last year, when these expanded by 14.4 per cent and 16.1 per cent, respectively.
Officials from the 21 APEC member economies are convening in Palm Springs, California to kick off the first technical meeting cluster of APEC 2023.
The United States is hosting APEC this year and will drive the forum’s agenda under the theme Creating a Resilient and Sustainable Future for All.
Kuriyama said taking advantage of the upcoming meetings in Palm Springs, member economies should prioritise efforts to coordinate clear and consistent policies.
He said coordinated macroeconomic policies played an important role in addressing the rising cost of living.
“In addition, keeping trade free, fair and open and boosting trade facilitation could reduce the pressure on food and energy prices considerably, mitigating the adverse impact on food security and poverty levels,” Kuriyama said.
— Bernama
