BALI, Indonesia, Oct. 5 (Xinhua) -- Stronger growth in developing countries is crucial to maintaining APEC growth, said Indonesia's Trade Minister here on Saturday, insisting that the solution to global growth woes lies in stronger cooperation.
Indonesia's Minister of Trade and Co-Chair of the 25th Asia Pacific Economic Cooperation (APEC) Ministerial Meeting Gita Wirjawan told media that participating leaders of the APEC members had strong emphasized the importance of promoting intra- regional growth and investment.
"I think in the past few months we have seen concerns over the global economy, one is the tapering of U.S. funding which every economy is concerned with and APEC has taken the responsibility of addressing these concerns head on," he said.
Wirjawan insisted that there is need for developing countries to remain robust because it would counter lackluster performance in developed countries.
"The importance of APEC members sticking together was the basic message being conveyed to each other. De-acceleration of growth is inevitable and as such we have to promote intra-investment more," he added.
Indonesian Foreign Minister Marty Natalegawa also disclosed that the same topic was discussed at the APEC Foreign Ministers' Meeting, where delegates acknowledged that beyond regional security there were new challenges to growth.
"It's not just traditional security issues but also climate change, food and energy security, promotion of integration. So when you talk of challenges there are many elements that contribute to economic growth. We must ensure that these qualities are locked in."
The discussion by the U.S. Federal Reserve about the possibility of reducing the pace of its asset purchase program occurred at a time of weaker-than-expected economic activity in some emerging and developing APEC economies. This resulted in an outflow of capital in some economies in the APEC region.
Moreover, the reassessment of the market on the future path of U.S. monetary policy resulted in large depreciations in almost all APEC currencies against the U.S. dollar.
The depreciation was largest among commodity exporters, including Australia, Chile, Malaysia, Peru, Papua New Guinea and Russia, partly due to recent declines in commodity prices.
In July, the IMF revised downwards its growth forecasts for global output. World GDP is expected to grow at 3.1 percent in 2013 and 3.8 percent in 2014. In the APEC region, growth is expected to moderate from 4.1 percent in 2012 to 3.9 percent this year, before growing slightly at 4.4 percent in 2014.