World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search


Sustaining Economic Growth is a Delicate Balancing Act

Sustaining Economic Growth is a Delicate Balancing Act, says APEC Policy Support Unit

Issued by the APEC Policy Support Unit

Vina del Mar, Chile, 17 May 2019

As trade tensions undermine global trade, investment and output, growth in the APEC region is expected to moderate to 3.8 per cent in 2019, down from 4.1 per cent in 2018, says a new report by the APEC Policy Support Unit.

In 2020, GDP growth for the region is projected to decelerate further, within the range of 3.5 to 3.7 per cent, the report forecasts. However, downside risks may be mitigated if trade frictions ease.

“The upside potential for growth could come from the quick and positive resolution of trade tensions - that would significantly reduce policy uncertainty,” said Dr Denis Hew, Director of the APEC Policy Support Unit.

The global economy grappled with heightened policy uncertainty in 2018, as economies issued tariffs and counter-measures. Deceleration of GDP growth ensued in parallel to the announcement of trade-restricting measures in the second half of 2017, culminating in the imposition of tariffs and counter-measures in 2018.

Today, trade restrictive measures comprise nearly 60 per cent of total trade and trade-related measures, according to the report, entitled A Delicate Balancing Act.

In contrast, for decades trade drove the expansion of the regional economy, from USD 23.5 trillion in 1990 to USD 63.6 trillion in 2017.

The declining influence of trade on the region’s growth is pivotal for APEC.

“Sustaining economic growth amid trade tensions and policy uncertainty is a delicate balancing act. But it also presents opportunities - to pursue more structural reform that encourages growth that is sustainable and inclusive,” Hew explained.

The region faces other challenges: growing income inequality, greenhouse gas emissions and encroaching climate change, and industry-disrupting technology. APEC’s approach to economic policy cooperation, however, can help members in navigating cross-border complexities and find solutions.

“APEC will need to regain the spirit of 1989 cooperative, holistic and innovative if it is to step up to the challenges of the next 30 years,” said Dr Rebecca Sta Maria, Executive Director of the APEC Secretariat.

APEC 2019 is hosted by Chile, an economy that has thrived largely due to its trade with the Asia Pacific region. In an effort to broaden opportunities, Chile has included the economic empowerment of women and internationalization of small and medium enterprises as regional priorities.

© Scoop Media

World Headlines


Gordon Campbell: On Collective Punishment In Venezuela

Yemen, Venezuela, Iran, Gaza… beyond the particulars of their suffering, each of these countries currently share one thing in common: their ordinary citizens are being subjected to collective punishment, in order to bring about regime change. More>>

Widely Ignored Report: 40,000 Dead Venezuelans Under US Sanctions

A new report on April 25 by a respected think tank has estimated that US sanctions imposed on Venezuela in August 2017 have caused around 40,000 deaths... Additional sanctions imposed in January 2019 are likely to lead to tens of thousands of further deaths. More>>


Gordon Campbell: On The Left-Wing Victory In Spain

Portugal and Spain continue to be striking exceptions to the rise of rightwing populism in Europe, a fact that’s commonly explained by the relatively recent experience both countries have had of living under fascist regimes. (Franco in Spain, and Salazar in Portugal.)

That horrific past still seems very much alive in the minds of voters... More>>

Easter Bombings Kill Hundreds: UN, World Leaders Condemn Sri Lanka Attacks

More than 200 have been killed and hundreds injured by a series of explosions inside churches and hotels in Sri Lanka, as Christians gathered for services to celebrate Easter.. More>>


  • Pacific.Scoop
  • Cafe Pacific
  • PMC