Connect with us

Hi, what are you looking for?


APEC economies seen contracting 2.5% due to pandemic

THE Asia-Pacific Economic Cooperation (APEC) bloc said its member economies are expected to post contractions of 2.5% this year on average, equivalent to about $1.8 trillion worth of lost output, as a result of the economic disruption caused by the pandemic.

“Prolonged stay-at-home measures, mandatory or voluntary, to safeguard health amid an ongoing pandemic, have translated into significant cutbacks in consumption and investments. As a result, the APEC region is expected to contract in 2020 by 2.5%,” the APEC Policy Support Unit said in its Regional Trends Analysis report issued Monday.

The new forecast represents an upgrade from the previous estimate of a 2.7% contraction issued in May, but if the forecast is borne out, it will be the first annual contraction among the member economies in three decades, it said.

APEC has 21 members: the Philippines, Australia, Brunei, Canada, Chile. China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Russia, Singapore, Chinese Taipei, Thailand, the United States and Vietnam.

APEC economies contracted 3.7% in the first half after growing 3.4% a year earlier due to the lockdowns imposed on both sides of the Pacific.

Domestic household spending, which has consistently been a growth driver for the bloc, declined 7.1% in those six months while investment fell 11.2%.

Trading activity was also severely affected by the travel bans and border closures imposed to curb the spread of coronavirus disease 2019 (COVID-19), while factory activity was also weighed down by lockdowns and weak demand.

“COVID-19 has been hardest on the poorest and most vulnerable in our societies: the people who can least afford healthcare, have the least access to infrastructure and technology and with the most precarious hold on jobs,” it said.

APEC’s policy support unit said member-economies should be supported by fiscal and monetary policy actions to help bring back confidence and stimulate growth.

However, it said countries struggling to contain the spread of the virus will likely lag the recovery since the business environment will not improve as rapidly.

It expects APEC members to grow 5.2% next year, lower than the earlier projection of 6.3%.

“GDP growth projections for 2021 reflect an economic rebound for the APEC region and the world at 5.2%, although lower compared to earlier forecasts. The lower projection reflects uneven growth across economies, with those that have managed to rein in the pandemic and reopened earlier expected to turn in better output outturns, while other economies, particularly where COVID-19 cases are either rising or resurging, are projected to grow at a slower pace,” it said.

The Philippines is among the economies struggling to bring down case numbers. There were 1,530 new COVID-19 cases reported Sunday, which brought the total to 407,838, according to the official count.

APEC said a resurgence of coronavirus will remain the “most dominant and dangerous” downside risk to the growth outlook as this threatens the capacity of health systems and may result in new rounds of lockdowns.

Moving forward, APEC said members should also push forward with their structural reforms and learn to adopt new technologies to ensure their post-crisis economies are resilient.

“Much work is also needed in the medium term to ensure a firmer recovery. What is imperative and appropriate could vary among economies at different stages of economic and technological development, but structural reforms need to be introduced, implemented and enforced now,” it said.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



THE PHILIPPINES lags regional peers in terms of the share taken up by solar and wind energy in its power mix, energy think tank...


THE PHILIPPINE government tempered its economic growth target for this year, as rising inflation and ballooning debt threaten to hamper the economy’s recovery from...


By Keisha B. Ta-asan SOURED LOANS held by Philippine banks declined for a third straight month in May, bringing the nonperforming loan (NPL) ratio...


THE NATIONAL Government is hoping local government units (LGUs) will channel their expanded budgets into raising agricultural output, Finance Secretary Benjamin E. Diokno said....


THE MARCOS administration should immediately address power supply shortages and high electricity rates, which are affecting businesses in the country, the Philippine Chamber of...


MANILA Electric Co. (Meralco) has confirmed receipt of an order from the Energy Regulatory Commission (ERC) directing the country’s largest power distribution utility to...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...


As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.