APEC Warns 21 Economies Growth Slows To 2.6% In 2025 Amid Trade Tensions

The Asia Pacific Economic Cooperation (APEC), comprising 21 economies including the U.S. and China, has warned of a significant economic slowdown with growth forecasted to decline from 3.6% in 2024 to 2.6% in 2025 due to escalating trade tensions and policy uncertainty. Tariff hikes, retaliatory measures, suspension of trade facilitation procedures, and non-tariff barriers have created an environment detrimental to trade, causing businesses to delay investments and new product launches. APEC's export and import volumes are expected to grow marginally in 2025, marking a sharp drop from 2024 levels. Leaders like Carlos Kuriyama emphasize that restoring confidence requires easing tensions, strengthening supply chain resilience, and improving trade rule transparency. Former Canadian trade minister Mary Ng also highlighted the need for predictable trade agreements to support business planning. Broader concerns include rising government debt and the risk of job losses amid persistent protectionist policies and structural challenges.