JAKARTA: The 21-member regional economic group Asia-Pacific Economic Cooperation (APEC) experienced a GDP growth of 3.5 percent in 2023, up from 2.6 percent in 2022, with a forecasted moderation in 2025 and 2026 due to geopolitical uncertainties. This information was included in the latest report by the APEC Policy Support Unit (PSU), a release issued by the APEC Secretariat and received Thursday.
According to Philippines News Agency, director of the APEC Policy Support Unit, APEC's economic growth has outpaced the global growth rate of 3.2 percent, driven by government spending and the recovery of the travel and tourism sector. However, challenges such as geopolitical uncertainties, trade protectionism, and commodity price fluctuations are expected to moderate growth in the coming years. Inflation eased to an average of 3.9 percent in 2023, down from 5.9 percent in 2022, with further decreases expected. Rhea Hernando, an analyst with the PSU, cautioned that economies should remain vigilant against inflationary pressures from supply chain disruptions and geopolitical issues. The report also noted significant currency depreciations against the US dollar and increased maritime risks at key canals, impacting trade activity and costs.