APEC sees lower economic growth in 2022, GDP may rise by 3.1% in 2023

Inflation in APEC reached 5.8 per cent in 2022. This is the highest inflation rate since the financial crisis in 2008, when it peaked at 6.6 per cent. The report projects APEC’s inflation to taper down to 3.9 per cent this year, declining further to 2.7 per cent in 2024.

“The combination of an enduring pandemic, high inflation coupled with rising interest rates and debts, as well as the ongoing geopolitical issues resulted in a significant slowdown in the global economy during 2022,” explained Carlos Kuriyama, director for the unit, in a press release.

“Both consumers and investors were cautious last year due to uncertainties and the gloomy economic outlook,” Kuriyama said. “As a result, demand and investment activities progressed slowly.”

“The sustained and broad-based increase in prices promoted an aggressive and synchronised response from monetary authorities across the world,” said Rhea C Hernando, a senior researcher with the unit. “In APEC, we are seeing the majority of central banks increase interest rates to dampen price pressures.”

Rising uncertainties also weakened merchandise trade in APEC during the first nine months of 2022. Growth in the volume of APEC’s merchandise exports was flat, while merchandise imports grew by 4.3 per cent compared to the same period last year, when these expanded by 14.4 per cent and 16.1 per cent respectively.

Meanwhile the value of merchandise trade’s exports and imports grew by 14.5 per cent, showing more resilience due to relatively high energy prices in 2022, driven in turn by supply shocks.

“We expect a modest growth of trade volumes in APEC this year, following the slowdown in global demand” Kuriyama added.

APEC is a regional economic forum established in 1989 to leverage the growing interdependence of the Asia-Pacific. APEC's 21 members aim to create greater prosperity for the people of the region by promoting balanced, inclusive, sustainable, innovative and secure growth and by accelerating regional economic integration.

Fibre2Fashion News Desk (DS)