The Asia-Pacific Economic Cooperation (APEC) region recorded an increase in economic growth of 6.1 percent in the first quarter of 2021, rebounding strongly from a 2 percent decline in the first quarter of 2020, according to an updated report from the APEC Policy Support Unit on Tuesday (17.08.2021/XNUMX/XNUMX).
This figure puts the region comfortably on track to meet growth expectations for the year, which is now estimated at 6.4 percent, or slightly higher than the previous forecast.
The high growth in the first quarter of 2021 was due to a combination of factors, including the low comparison point following a substantial economic contraction a year ago, as well as higher public spending given the sustained impact of the pandemic on economic activities, while domestic consumption grew considerably during this period, the report said.
In the near term, the APEC Policy Support Unit still sees sustained stimulus measures by governments boosting economic growth in the region. Private consumption will also receive a confidence boost as consumers are expected to tap into their accumulated savings, bolstered in part due to cash transfers and extensive household subsidies.
«Vaccination programmes and their implementation are still driving economic growth and recovery progress in the region», said Denis Hew, Director of APEC's Policy Support Unit.
«We continue to see a disparity in access to vaccination coverage across APEC; economies with accelerated rollouts and sustained fiscal support will recover faster and stronger, while economies struggling with access to vaccines and with limited fiscal space will take longer to recover due to these uncertainties."Hew said.
Vaccination coverage in APEC is remarkably diverse, from 148 doses per 100 residents to a low of just one dose per 100 residents. As a result, the rate of fully vaccinated people in the region varies widely, from 0,2 percent to 72 percent of the population as of mid-August.
“The race to vaccinate as many people as possible in the shortest time possible is extremely crucial,” said Rhea C. Hernando, a researcher at the APEC Policy Support Unit who updated the report.
"Economies cannot afford to continue imposing restrictions, closing borders and providing extensive fiscal and monetary support indefinitely," he added.
Hernando commented that Multilateral cooperation is key to facilitating the free flow of vaccine components and related supplies, as this will significantly contribute to the accessibility and affordability of vaccines, especially for low- and middle-income economies.
"It is now clear that for economic recovery to be on a firmer footing, health must be safeguarded, which in turn requires access to vaccines," he added.
Exchange data
In terms of trade, the region had a positive performance in the first quarter of 2021, with a Growth in the value of exports and imports of goods at a rate of more than 16.8 percent and 16.2 percent respectively, a contraction of 6.1 for exports and 4.1 percent for imports during the same period last year.
The better performance is mainly due to the pharmaceutical, office and communications equipment, while the sectors agri-food, clothing, metals and minerals They also joined in the commercial push.
The updated report noted that the impact of COVID-19 on the transport and travel sectors continues to impact APEC commercial services performance. For the period January to March 2021, commercial services declined further to 12 percent for exports and 15,2 percent for imports, compared with a decline of 9,5 percent for exports and 9,2 percent for imports for the same period in 2020. (APEC Report)
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