Economic growth in APEC region: Analysis

​The Asia-Pacific Economic Cooperation (APEC) region is experiencing broad-based economic growth that has seen significant contributions from trade and household spending.

According to the latest APEC Regional Trends Analysis, APEC economies continue to strengthen but their growth and more equitable distribution of the benefits hinge on the fate of market openness and integration in the Asia-Pacific.

Director of the APEC Policy Support Unit on the trade and inclusive policy outlook for PNG and the broader region, Dr Dennis Hew, revealed that APEC GDP growth surged to 4.1 percent in 2017 from 3.4 percent in 2016.

However, he said high growth is expected to be maintained in 2018 and 2019.

Dr Hew in a media conference today in Port Moresby said much of the growth was driven by domestic consumption as well as trade, particularly in exports and imports among the APEC economies.

He added that economic momentum began to pick up in trade numbers in 2016 in the region both in value and volume in the imports and exports.

However, he said there is still some uncertainties in some APEC economies in terms of GDP and inflation rates.

He stated that this is where central banks and monetary policies must step in and balance the interest rates.

The APEC Regional Trends Analysis report details the challenges that protectionism poses to the realization of more inclusive and sustainable APEC economies, and recommends widening economic participation by harnessing emerging opportunities in the digital space as a more effective alternative.

It also points to the potential for greater coordination in APEC to seek out, help implement and align innovative policy solutions.

Author: 
Freddy Mou