is projected to maintain stable economic growth, showcasing resilience in the face of uncertainty and ongoing challenges.
According to the August update of the
APEC Regional Trends Analysis, the
region's GDP is expected to grow by 3.5% in 2024, consistent with the growth rate observed in 2023.
"While growth rates may vary across the region, the collective commitment to controlling inflation and adopting prudent monetary policies has been pivotal," said
Carlos Kuriyama, director of the
APEC Policy Support Unit.
"As we move forward, it is crucial that we remain vigilant and flexible, ensuring that our economies can weather future challenges and continue on a path of sustainable development," he added.
APEC economies have seen significant success in moderating inflation, with the average inflation rate declining to 2.8% in June 2024, down from 5.9% in January 2023. This reduction underscores the effectiveness of the monetary policies implemented across the region.
"Central banks in APEC have mostly maintained a cautious approach, avoiding premature rate reductions that could trigger capital flight and currency depreciation," said
Rhea C. Hernando, an analyst with the
Policy Support Unit.
"As a result, APEC has seen the appreciation or slowing depreciation of 20 currencies against the US dollar in recent months," she added.
Trade performance within the APEC region expanded, with merchandise exports in the first quarter of 2024 growing by 3.9% in volume and 1.6% in value compared to the same period in 2023. This positive trend aligns with the anticipated global trade volume rebound of 3.1% in 2024.
He noted that the Manufacturing Purchasing Managers' Index across APEC economies have remained steady, reflecting favorable manufacturing activity.
The report highlights that the region is currently grappling with increased trade tensions, which have led to a notable rise in trade restrictions and remedies, such as anti-dumping and countervailing duties.
Persistent supply chain disruptions have also increased the cost and time of transporting goods across border, putting additional pressure on prices.
Strategic economic policies and international cooperation are expected to play a crucial role in navigating these issues. APEC economies are encouraged to adjust monetary policy carefully, rebuild fiscal buffers, and explore policy alternatives that enhance trade relations without restricting trade and investment.
"The steady growth we are witnessing across the APEC region, despite global uncertainties, is a testament to the resilience and adaptability of our economies," Kuriyama indicated.
"As we continue to navigate complex challenges, APEC's commitment to sound economic policies and regional cooperation will be critical in sustaining this momentum and fostering long-term prosperity," he concluded.
For more information on the APEC Regional Trends Analysis, August 2024,
visit this page.
Peru is hosting APEC for the third time after the 2008 and 2016 editions.
21 leading economies
APEC is made up of:
Australia, Brunei Darussalam, Canada, Chile, People's Republic of China, Hong Kong, Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, the Russian Federation, Singapore, Chinese Taipei, Thailand, the United States, and Vietnam.
Together, they account for 62% of world's GDP, 48% of global trade in goods and services, plus 38% of the planet's population.
Editor's note: Information provided by the APEC Secretariat.
(END) NDP/MVB