MANILA -- The 21- Asia Pacific Economic Cooperation (APEC) economies would continue to outpace the global economic growth, the APEC Policy Support Unit said Tuesday.
In its APEC Regional Trade Analysis, combined gross domestic product (GDP) of the member economies is seen to grow at 3.9 percent at end-2017, higher than the world GDP growth of 3.6 percent and 3.4 percent more than the region's GDP last year.
The region will keep outpacing the global economy until next year with growth seen at 3.8 percent before aligning with the global GDP growth in 2019 and 2020.
The report noted that the growing trade and investments in APEC economies have been supporting the region's growth.
From January to August 2017, APEC's merchandise exports grew 10.4 percent to USD5.66 trillion.
It was a turnaround from a 6.6 percent decline in exports revenues of the region in the same period last year.
Moreover, APEC also attracted 53 percent of world's foreign direct investments (FDIs) in 2016, with inflows increasing by 1.4 percent to USD926.3 billion.
These investments are translating into more economic activities for this year and the coming years.
“The economic outlook in APEC is encouraging but there is much work to do to fight rising inequality that contributes to anti-globalization sentiments in some areas. More people need to feel the benefits of trade-driven growth to sustain economies over the long haul,” said APEC Policy Support Unit Director Denis Hew.
However, the report noted that despite the economic expansion in APEC, the challenge of inclusive growth remains in the region.
It stated that APEC, similar with the global trend, has a declining labor share, which means "wages are not rising in step with rising productivity."
"With economies finding their footing, there is a real opportunity for policymakers to confront the effects of market competition and technological change in ways that could make a lasting difference for employment and income prospects in the region," added Hew.
APEC is composed of Australia, Brunei Darussalam, Canada, Chile, China, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, South Korea, Taiwan, Thailand, United States, and Vietnam. (PNA)
