Pump priming schemes pushed for bounce back

A new updated report by the APEC Policy Support Unit projects economic growth for the region at 5.7 percent in 2021 and 4.1 percent in 2022

Member economies of the Asia-Pacific Economic Cooperation (APEC) should employ fiscal and monetary stimulus support measures to sustain livelihoods, and effectively contain the coronavirus disease as the region faces the prospect of a strong recovery.

A new updated report by the APEC Policy Support Unit projects economic growth for the region at 5.7 percent in 2021 and 4.1 percent in 2022.

It said the World Trade Organization (WTO) also expects a 7.2-percent rise in global trade, while the International Monetary Fund (IMF) forecasts global trade rising by 8.1 percent this year.

To boost economic recovery, the report urged APEC economies to take advantage of digital opportunities even as liquidity assistance to businesses and cash handouts to households need to continue to be provided in the immediate term.

“The pandemic has highlighted the role of innovation and necessitated the move towards digitalization. When fiscal space allows, economies can invest in digital infrastructure, green jobs and new technologies, while also ensuring the upskilling and reskilling of the workforce,” it said.

The report said while vaccines could eventually end the pandemic, universal access to healthcare and widespread immunization is imperative.

Regional fora, like APEC, could play an important role in ensuring a free and rapid flow of vaccines and therapeutics across borders, while it could also launch an intensified information campaign to boost vaccine uptake and combat misinformation, it said.