APEC Countries Pledge to Loosen Fiscal Policies

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  • TEMPO.CO, Jakarta - Member countries of the Asia-Pacific Economic Cooperation (APEC) pledged to loosen their fiscal policies to support the pursuit of global economic recovery and job creation. The agreement was set out in a joint statement, the result of a meeting between of finance ministers from 21 APEC countries in Beijing on Tuesday and Wednesday.

    The bloc also agreed to increase structural reforms to create new sources of economic growth.

     “As the global economy still faces persistent weakness in demand, growth is uneven and remain below the pace necessary to generate needed jobs and downside risks have risen,” the statement said as Reuters reported yesterday.

    The bloc  said it will "continue to implement our fiscal policies flexibly, taking into account near-term economic conditions, so as to support economic growth and job creation, while ensuring fiscal sustainability."  

    APEC countries, which include Indonesia, Japan, USA, South Korea, and Canada, accounted for 40 percent of the total global population, 54 percent of the total world economy, and 44 percent of world trade.

    Wednesday's meeting also reiterated APEC finance ministers' commitment to make market-determined exchange rates become more flexible.

    The leaders of APEC member countries are scheduled to have another meeting on November 10 and 11 to discuss fiscal and infrastructure issues as well as trade.