A decade after the Cebu Action Plan was crafted in the Philippines, finance ministers of the Asia-Pacific Economic Cooperation (APEC) will come up with a new non-binding five-year roadmap attuned to the regional challenges of these times.
"Despite the reduction of inflationary pressures and gradual easing of monetary policy, the medium-term outlook for global and regional economic growth remains uneven and weaker than prior to the pandemic," the 21 APEC finance ministers said in a joint Oct. 21 statement following their meeting in Lima, Peru.
Philippine Department of Finance (DOF) Undersecretary Joven Z. Balbosa represented Finance Secretary Ralph G. Recto, who is now in Washington, D.C., to attend the International Monetary Fund and World Bank Group's (IMF-WBG) 2024 Annual Meetings.
"We also acknowledge that the likelihood of a soft landing for the global economy has increased and that we are on a path towards a gradual recovery of economic activity," the APEC finance ministers said.
But they flagged emerging risks from higher world debt, elevated interest rates, geopolitical and economic tensions, global value chain disruptions, volatile commodity prices, as well as extreme weather events wrought by climate change.
In particular, the ongoing wars between Russia and Ukraine as well as in Gaza "have an impact on the global economy," according to a separate statement of Peruvian Minister of Economy and Finance José Arista Arbildo, who chaired the 31st APEC Finance Ministers' Meeting.
Addressing these risks would entail "a balanced mix of monetary, fiscal and other policies to address global and regional challenges, with strong multilateral cooperation in the APEC region as a critical driver for economic growth," they noted.
"We recognize the importance of implementing responsible and prudent fiscal and monetary policies, while considering their potential spillover effects. We also acknowledge the relevance of effectively addressing debt vulnerabilities, including through the joint efforts by official and private borrowers and creditors to improve debt transparency," they added.
For APEC's finance ministers, enhancing access to competitive markets across all sectors, decent work and quality education, digitalization and innovation, investment and trade, sustainable finance, and transition to the formal global economy would not only slash poverty but also foster inclusive, resilient and sustainable growth in the region.
In this regard, "considering the Cebu Action Plan comes to an end in 2025, we welcome the adoption of the guidance document for developing a new finance ministers' process roadmap," they said.
The Philippines-shepherded Cebu Action Plan is the 10-year APEC roadmap being implemented since 2015, aimed at making the region more financially integrated, resilient and transparent while also sustaining the gains made in effecting structural reform to achieve inclusive growth.
The current voluntary plan's deliverables are across four pillars, namely: accelerating infrastructure development and financing; advancing fiscal reforms and transparency; enhancing financial resiliency; as well as promoting financial integration.