APEC economies grow 6.1 percent in Q1

Illustrative image (Photo: AFP/VNA)

Hanoi (VNA) - The Asia-Pacific Economic Cooperation (APEC)region posted a 6.1-percent increase in economic growth in the first quarter of2021, bouncing back strongly from a 2-percent decline in the first quarter of2020, according to an updated report by the APEC Policy Support Unit.

The number shows the region is on track to achieve growthexpectations for the year, which is now estimated at 6.4 percent, slightlyhigher than the earlier prediction.

The high growth in the first quarter of 2021 is attributable to a combination offactors, including the low comparison point following substantial economiccontraction a year ago, as well as higher government spending given thesustained impact of the pandemic on economic activities, while domesticconsumption grew considerably during this period, the report said.

In the near term, the APEC Policy Support Unit still sees sustainedstimulus measures from governments driving the region's economic growth.Private consumption will also get a boost of confidence as consumers areexpected to draw on their accumulated savings, bolstered in part due to cashtransfers and wide-ranging subsidies to households.

"Vaccination programs and rollout still drive economic growth andthe recovery progress in the region," said Denis Hew, Director of the APECPolicy Support Unit. He said there were disparity in access to vaccinationcoverage across APEC and economies with faster rollouts and sustained fiscal supportwill recover faster and stronger, while economies that struggle with vaccineaccess and have limited fiscal space will take more time to recover due tothese uncertainties.

In terms of trade, the region performed positively in thefirst quarter of 2021, with the value of merchandise exports and importsgrowing at a higher rate of 16.8 percent and 16.2 percent, respectively, from acontraction of 6.1 for exports and 4.1 percent for imports during the sameperiod last year.

The updated report noted that the impact of COVID-19 on the transport and travel sectors continues to drag APEC'scommercial services performance. For the period January to March 2021,commercial services declined further to 12 percent for exports and 15.2 percentfor imports, compared to a decline of 9.5 percent for exports and 9.2 percentfor imports for the same period in 2020./.

VNA