Asia Pacific Economic Cooperation: Economic Decline of 2.7% expected in the region
The Asia Pacific Economic Cooperation has stated that the APEC region is to face an economic decline of 2.7% in 2020 due to the impact of COVID-19. Also, the region is to face near growth rate. This will be the highest decline for the region since the 2008 financial crisis.
The unemployment rate according to the report of APEC was 3.8% in 2019 and it is to increase to 5.4% in 2020. The region is also expected to face an economic rebound in the year 2021. The anticipated growth of the region in the 2021 is 6.3%.
APEC comprises of Vietnam, US, Thailand, Taiwan, Singapore, Russia, Philippines, Peru, Papua New Guinea, New Zealand, Mexico, Malaysia, Republic of Korea, Japan, Indonesia, Hong Kong, China, Chile, Canada, Brunei and Australia.
It was begun in 1989. The forum was formed to leverage the growing inter dependence of the countries in the region of Asia-Pacific. The region has now been renamed as Indo-Pacific.
The three major observers of APEC include ASEAN, Pacific Economic Cooperation Council and Pacific Islands Forum.
India and APEC
India is not a member of APEC. For the first time, India was invited to be an observer in the association in 2011. India has requested for membership in APEC and had received the support from Japan, US, Papua New Guinea and Australia. There are constraints faced by India to join APEC as India does not border Pacific Ocean.