Peruvian Official Says APEC Helps Economic Recovery

Asia-Pacific Economic Cooperation (APEC), the flagship economic forum in the region, will play an essential role in leading the world out of the shadow of economic doldrums, Elard Escala, Peru's APEC senior official, said.

With the facts that economic conditions in the United States worsened and Japan suffered economic stagnation in the past decade, participants to the APEC meeting put priority on economic recovery issues in their consultations. The issues are of more significance after the terrorist attacks in the United States, Escala was quoted as saying by Tuesday's APEC Newsletter published by the China Secretariat for APEC 2001.

The attacks have severely affected the global economy, particularly the financial, trade and service sectors, the official said. The world's stock market witnessed the most serious setbacks in about a century, and big corporations became victims since their stock value shrank in a short period of time.

Peru's trade with the United States, its biggest trade partner, has been affected dramatically, he said. Peru's tourism industry saw a 70 percent decrease in the number of tourists within a single week since some 60 percent of visitors came from the United States.

Costs to insurers have swelled with the potential threat of terrorism. The government has to make more investment when insurance companies have less economic scope to invest, the Peruvian official said. In spite of the economic backdrop, he believed that APEC, as an important member of the international community, will help mobilize global efforts in resolving economic problems especially in trade and financial sectors.

APEC will make its own contributions to global economic recovery, though it is a worldwide issue, Elard Escala said. Anti- terrorism will be part of the talks between ministers and economic leaders in the APEC meetings in Shanghai, but will not divert their attention from economic matters.

Escala said leaders from the APEC members are expected to exchange views in four major areas: international issues including global anti-terrorism efforts, global macro-economic situation, capacity building and the future vision and orientation of APEC.






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