Trade across Asia-Pacific Economic Cooperation (APEC) economies in the first quarter of 2024 expanded in contrast with the same period during the previous year on the back of global demand, with stronger export performance bolstering positive economic signals.
In a report, APEC Policy Support Unit director Carlos Kuriyama, analyst Rhea Crisologo Hernando and researcher Glacer Niño Vasquez said merchandise exports grew by 3.9 percent in volume and 1.6 percent in value, with imports also showing improvements.
Citing the International Monetary Fund’s World Economic Outlook July 2024, they said such trade performance aligns with the expected global trade volume rebound of 3.1 percent in 2024 and 3.4 percent in 2025.
However, Kuriyama, Hernando and Vasquez said increasing trade restrictions and other trade remedies reflect growing geo-economic fractures affecting APEC members.
“The impact of these tensions also extends to foreign direct investment (FDI) flows. In 2023, APEC FDI inflows fell for a third consecutive year, declining by 7.9 percent, while outflows fell by 6.3 percent, contrasting with a 2 percent global FDI reduction,” they said.
The triumvirata said APEC’s gross domestic product growth is anticipated to hold steady at 3.5 percent in 2024, mirroring last year’s pace.
“Positive economic signals are emerging, bolstered by a recovery in domestic consumption and stronger export performance,” they said.
Meanwhile, the Manufacturing Purchasing Managers’ Index, which measures the views of supply chain managers regarding manufacturing trends, has stayed relatively steady, an indication of encouraging business conditions across several APEC economies, they added.