New APEC Report: New Sources of Growth Vital as Trade Falters

The latest APEC Regional Trends Analysis was issued ahead of pivotal economic policy meetings of the region’s Leaders and Ministers this week in Lima
Merchandise imports and exports in the 21 APEC member economies continue to underperform, contracting 6.6 per cent and 6.4 per cent, respectively, during the first eight months of the year due to weak global demand, the report reveals.
“Continued sluggish trade has moderated growth in APEC to 2.4 per cent, igniting the pursuit of new sources of growth,” said Dr Alan Bollard, Executive Director of the APEC Secretariat. “A top priority is opening up trade and supply chains to small firms that employ most of the region’s workforce but do business across borders in quite modest numbers.”
The report indicates that new trade opportunities abound in the region, bolstered by household consumption and the effect of low interest rates and prices of commodities, particularly oil, on spending habits. But it cautions that uneven growth among economies, interest rate shifts and protectionism pose near-term risks.
“While tariffs across APEC remain low at around 5 per cent, trade-restrictive measures have increased and trade-facilitating measures have declined in the region,” noted Dr Denis Hew, Director of the APEC Policy Support Unit—the research body which authored the report.
The report advocates education reform and the introduction of measures that improve career training and skills development compatible with digital innovation and labor market requirements as new industries take shape. This includes access to lifelong learning which is becoming more urgent as workforces age in many of the region’s economies.
Press-release at the official APEC web-site