GROWTH in the Asia-Pacific Economic Cooperation (Apec) region is expected to reach 3.1 percent in 2025, up slightly from the earlier three percent forecast, supported by steady trade and strong demand for high-tech goods, according to the latest Apec Regional Trends Analysis.
The report, released by the Apec Policy Support Unit, said momentum will likely ease in 2026, with growth moderating to 2.9 percent amid rising public debt, weaker trade, and the fading impact of temporary drivers such as advance shipments ahead of new trade restrictions.
“Apec economies have shown agility in adapting to shifting trade and policy conditions,” said Carlos Kuriyama, director of the Policy Support Unit. “But this resilience is being tested as structural pressures like rising debt and slowing trade begin to take hold.”
Merchandise trade expanded solidly in the first half of 2025, with exports and imports rising by 6.5 percent and 6.1 percent, respectively. However, export growth is projected to slow to 1.1 percent next year as temporary boosts wane, said report co-author Glacer Niño Vasquez.
The report also warned that general government gross debt in Apec could exceed 110 percent of GDP by 2026, reflecting pandemic-related spending, slower revenue recovery, and higher social expenditures.
“Rising debt is eroding fiscal space just as economies need to invest in innovation, infrastructure and human capital,” said Rhea C. Hernando, another co-author.
Inflation eased to 2.2 percent in the third quarter, giving central banks some policy space, but Apec urged continued cooperation to sustain growth. “A predictable policy environment and open dialogue are essential to restore confidence,” Kuriyama said. / KOC