Apec economic recovery hampered by Covid-19 vaccine availability: report

THE road to recovery in the Asia-Pacific Economic Cooperation (Apec) countries will not be an easy nor even one, as Covid-19 vaccine availability across member economies differs. According to the Apec Regional Trends Analysis report released on Thursday, this will pose significant challenges to already-battered lower-income economies.

The report noted that while the pandemic affected everyone everywhere, more vulnerable groups like women, young people, the elderly and the poor face compounded layers of negative impacts.

Rhea Hernando, a macroeconomist with the Apec Policy Support Unit, said: "People with insufficient digital skills and equipment or those living in areas where access to the Internet is unreliable or expensive are denied the chance to reconnect, unable to continue their work and study."

But governments across Apec have implemented effective pandemic management policies, which have allowed for gradual reopening and the resumption of economic activities. This has boosted consumption, Apec's main driver of growth, as the report noted an improved annual contraction of 3.9 per cent in the second half of 2020, up from the 7 per cent contraction recorded in the first half of last year.

This has in turn supported economic recovery of the region, as the report noted a softer economic contraction of 1.9 per cent in 2020. Estimates place the region's economic growth for 2021 at 6.3 per cent as fiscal measures work to drive government and household consumption as well as investments.

However, director of Apec Policy Support Unit Denis Hew warned: "The region continues to face significant uncertainties, largely linked to how the pandemic is evolving, while job losses due to the pandemic and expectations of higher inflation this year could suppress consumer spending."

While most Apec member economies are slated to achieve widespread immunisation by mid-2022, others relying largely on the Covid-19 Vaccines Global Access initiative for their supply of vaccines will face greater uncertainties.

Thus, economies such as Vietnam, Malaysia, the Philippines, Mexico and Peru are in for a longer battle. This will make economic recovery efforts very fragile, curtailing recovery of the region amid a higher risk of virus resurgence if they are unable to immunise their communities in time.