APEC Regional Trends Analysis, August 2022 Update: Future-Proofing APEC Amid Challenges and Uncertainties

The APEC region is expected to significantly moderate in the near term to 2.5 percent in 2022 and 2.6 percent in 2023 following a 5.9 percent rebound in 2021, reflecting sharp downgrades in economic growth for all member economies, in tandem with the rest of the world. Already reeling from a pandemic that is marked with virus mutations, the world is also dealing with soaring inflation, a protracted war in Ukraine and heightened uncertainty. The economic slowdown is already apparent in Q1 2022 when economic and trade activity in APEC grew at a slower pace. The manifold of difficulties that the world is facing underscores the importance of preparedness: preparing for the next pandemic or crisis and preparing for a future that is inevitably highly digitalized and greatly exposed to the harmful effects of climate change. Toward this end, APEC economies need to work cohesively and consistently toward a sustainability and inclusivity agenda that future-proofs economies in the region.