Trade performance in the Asia-Pacific Economic Cooperation (APEC) region has shown modest recovery but prospects may decline with potentially slower global demand and restrictive trade policies, according to the latest APEC Regional Trends Analysis.
It said merchandise trade in the region grew by 3.3 percent in value and 4.1 percent in volume in the first nine months of 2024, reversing the sharp contraction seen in 2023 on a year-on-year basis.
However, the number of trade remedies surged to 1,043 by the end of 2024, up from 960 in 2023, highlighting ongoing worries on unfair trade practices.
“Trade-restrictive measures raise costs and limit market access, potentially weakening external demand and trade activity. Additionally, the growing number of trade remedies suggests an increase in unfair trade practices,” the report said.
APEC Policy Support Unit Director Carlos Kuriyama said APEC economies must reinforce trade openness, strengthen policy coordination, and pursue long-term reforms as global uncertainties persist.
The report said robust double-digit growth in travel in APEC has propelled commercial services trade expansion, particularly tourism, strengthening economic ties and cultural exchange.
It identified travel resurgence among the upside opportunities in the region.
“Semiconductors are the lifeblood of the digital economy, highlighting the need for open trade and robust supply chains to sustain global technological progress. However, concerns remain on whether this upsurge could be sustained well into 2025,” the report added.
It also projects the region’s gross domestic product (GDP) growth of 3.3 percent in 2025, following an estimated 3.5 percent expansion in 2024, though a further slowdown to 2.7 percent is anticipated in the coming years. Structural challenges, including demographic shifts and rising trade barriers, are expected to weigh on future economic trajectory.
