Global recession inevitable next year, Apec finance ministers say, express concern about inflation

They reached the consensus at the 29th Apec Finance Ministers’ Meeting on October 20 in Bangkok.

Thailand’s Finance Minister Arkhom Termpittayapaisith told a press conference that Apec members and delegates, and representatives from the Asian Development Bank (ADB), the International Monetary Fund (IMF), the World Bank Group, the Organisation for Economic Cooperation and Development, and the Apec Policy Support Unit were well represented and eager to share their perspectives in order to find the best economic solution together.

He said that in addition to being concerned about the global recession, they were concerned about the high inflation caused by rising energy and food prices, as well as the public debt of each government, which is increasing exponentially due to the need to recover from the Covid-19 pandemic.

However, each country will be affected differently, and Thailand's economy is expected to grow by 3.7 per cent next year, up from 3.5 per cent this year, he said.

It is due to a positive recovery in the tourism industry, with countries such as Japan opening their borders, he added.

"Hong Kong will return soon, while China has stated that they need more time to settle things in order to be more certain," Arkhom said.

In contrast, the global economy is expected to slow from 3.2 per cent growth this year to 2.7 per cent next year.

Arkhom insisted that the meeting atmosphere was friendly and cheerful, but refused to discuss one of the meeting's most divisive topics, the Russia-Ukraine war.

He said that members had their own different opinions.

This 29th Apec Finance Ministers' Summit issued no joint statement, only a consensus to support sustainable finance and digitalisation.

Meanwhile, representatives from the IMF, ADB, and World Bank advised Apec members to implement more treasury policies to deal with the future economy.

"The policy should be more directly targeted at the poorest and most vulnerable groups who are the most affected by high energy and food prices," Arkhom said.

He also added that the meeting considered using the Asean Catalytic Green Finance Facility to help with the development of green infrastructure.

Furthermore, the urgent need to protect the environment has prompted Apec members to launch Green bonds, Social bonds, Sustainability bonds, and Blue bonds. All aim to promote sustainability investment and the transition to net zero greenhouse gas emissions.

Arkhom mentioned that the meeting also covered digitalisation and tax policy. Every member has agreed to help each other through this digital transformation.