APEC growth to slow down amid various crisis
Economic growth in the Asia-Pacific Economic Cooperation (APEC) region is expected to slow down to 2.5% in 2022, lower than the earlier projection of 3.2%.
According to a report by the APEC Policy Support Unit, the slow growth is mainly due to the soaring inflation, a protracted war in Ukraine, heightened uncertainties, and the continuing impact of the pandemic and virus mutations.
The growth forecast for next year has also been downgraded from 3.4% to 2.6%.
APEC Policy Support Unit Senior Researcher Rhea Hernando said, “The expected economic moderation in APEC is in line with lower projections for the global economy.”
“Earlier this week, we saw the International Monetary Fund revise downward its global GDP forecast for 2022 to 3.2 percent, from 3.6 percent…The sharp downgrades in economic growth for China and the US, along with an expected contraction in Russia, weighed on the APEC region’s prospects,” she added.
Member economies are urged to ramp up crisis management efforts to soften the blow of inflation, uncertainties, and virus mutations, especially for the most vulnerable.
Vaccination drives are also encouraged to prevent the resurgence of infections.
APEC Policy Support Unit Director Denis Hew added that focusing on “sustainability and inclusivity” could help future-proof the region.
