MANILA, Philippines - The Asia-Pacific Economic Cooperation (APEC) trimmed on Monday the 21-member bloc's economic growth forecast for this year and the next.
On a press briefing, Denis Hew, APEC secretariat director of policy support, said the region is seen to expand 3.1 percent this year, down from the May forecast of 3.2 percent.
For 2016, growth is expected to pick up to 3.4 percent, same level as 2014, but down from the 3.8-percent outlook early in the year.
"We see modest growth this year... but we see a recovery next year," Hew told reporters in Manila where the APEC yearly summit is being held.
Private consumption would be the region's main growth driver. "Much of that was driven by low interest environment that has allowed greater access to financial resources," Hew explained.
There was also "the recent drop in oil prices which has increased disposable income," he added.
On the other hand, trade could remain a drag to growth, owing to slower expansions, especially in China.
For the first six months of the year, exports already went down 5.9 percent, while imports plummeted by a faster 10.3 percent, said Hew.
Lower commodity prices could also be a bane on APEC economies driven by commodity exports such as Australia.
"The decision to raise interest rates [by the US Federal Reserve], so long as it is done in an orderly and predictable fashion, I don't think it will have an impact on the financial markets," Hew said.
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