‘Economic recovery in 2021 possible’

KUCHING: Despite significant challenges this year, a global economic recovery is projected for 2021, contingent on reduced global volatility and greater multilateral cooperation to contain the Covid-19 pandemic, according to a new report by the Pacific Economic Cooperation Council (PECC).

The fifteenth annual State of the Region for 2020-2021, ahead of an Economic Leaders’ Meeting to be hosted by the Asia-Pacific Economic Cooperation (Apec) this week.

In 1994, Apec leaders adopted the goal of free and open trade and investment in the Asia-Pacific by 2020, this year they will seek to adopt a new vision to drive cooperation and integration.

Ambassador Don Campbell, Cochair, PECC, said: “Apec leaders meeting this week need to send a strong signal to businesses and consumers of a commitment to growth and stability. They have an opportunity to do so through Apec’s post-2020 vision”.

The economic outlook for the Asia-Pacific1 has improved somewhat in recent months, but recovery will be uneven and fragile as the global pandemic has deepened in some places.

Asia-Pacific economies are expected to shrink by about 3.1 per cent in 2020. Growth of five per cent is now expected next year which is then expected to decline towards 3.5 per cent in subsequent years.

According to Eduardo Pedrosa, Secretary General, PECC, said: “While there is hope for a recovery in 2021, the risk of protectionism holds back investment in new jobs and innovation, it will be essential for the region to respond appropriately and decisively in order to restore confidence for sustainable recovery.”

Similarly, for trade, exports and imports figures are expected to fall by 8.6 and 9.7 per cent respectively in 2020 but will rebound to 7.8 and 9.2 per cent growth in 2021.

However, this is unlikely to offset losses in the mediumterm as the risk of protectionism and slowing trade growth have weighed in heavily on confidence for a sustainable recovery.