APEC Speeding Up Financial Integration to Boost Growth via Trade, Investments

(PNA) — Member economies from the Asia Pacific Economic Cooperation (APEC) are working to accelerate financial integration to maintain strong trade and investments imperative for sustaining robust economic growth in the Asia Pacific region.

Philippines National Treasurer Roberto Tan said the region now contributes 57 percent of global output, noting its role as an engine of growth comes from the strong trade and investments linkages across member economies.

Tan said intra-regional trade is estimated at 46.5 percent of world trade today.

“Given this, it is imperative for APEC to further advance financial integration as a driver for intensified intra-regional trade and investment,” he noted at the opening of the APEC Finance and Central Banks Deputies’ Meeting on Thursday here.

Tan said APEC Finance officials are discussing initiatives which can forward financial integration in the region and to make economic growth more inclusive, as they finalize the Cebu Action Plan (CAP), a roadmap for reforms for the APEC member economies.

“For example, the geographical fragmentation of the supply chain prevents vast opportunities for SMEs (small and medium enterprises) to increase participation in the regional and global trade. Lowering the cost of sending remittances and expanding financial literacy also promote financial integration,” he stressed.

Tan bared that APEC senior finance officers worked for more than 12 hours Wednesday to finalize the CAP, which they shall discuss today for endorsement to APEC finance ministers.

Apart from financial integration, other pillars of the roadmap include financial resilience, fiscal reforms and transparency, and infrastructure development and financing.

Tan also noted the significant implication of natural disasters for public financial management.

It has been estimated that 70 percent of natural disasters that occurred from 2003 to 2013 have hit the Asia Pacific region.

“Given this alarming threat, it is critical that APEC economies work together to create means and safeguards against shocks to fiscal sources, natural disasters and other unpredictable events,” he added. (PNA) LGI/LDV