APEC Finance Ministers today pledged to decisively address risks to the global economy to restore confidence, financial stability and sustainable growth.
Meeting in Honolulu, Ministers acknowledged that growth and job creation have weakened in the region, particularly in advanced economies, while inflation remains elevated in many. Capital flow volatility has intensified in response to heightened risk aversion.
Hosting the 18th APEC Finance Ministers’ Meeting, US Treasury Secretary Timothy Geithner and other APEC Finance Ministers issued a joint statement that pledged to “take coordinated actions to strengthen the global recovery, reinforce financial sector stability, maintain open markets and build a foundation for strong, sustainable and balanced growth”.
Ministers reviewed the conclusions of the G20 and committed to take coordinated actions. Advanced economies committed to implement clear, credible and specific measures to achieve fiscal consolidation. Economies with large current account surpluses committed to reforms to increase domestic demand, coupled with greater exchange rate flexibility.
Ministers committed to move more rapidly toward more market-determined exchange rate systems and enhance exchange rate flexibility to reflect underlying economic fundamentals. They also reiterated that excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability.
Ministers also took stock of APEC’s work on infrastructure financing and financial empowerment. They said that accelerating infrastructure investment and improving service delivery will contribute to boosting the recovery and is critical for sustaining economic growth in the Asia-Pacific region.
They also recognized that a significant number of residents in the region still lack effective access to safe and reliable financial services and affirmed their commitment to expand the reach of safe and reliable financial services in APEC economies to strengthen and broaden economic growth.
Ministers reaffirmed their shared interest in reforming the financial sector to better meet the needs of our economies.
APEC Finance Ministers also considered analysis and perspectives from the President of the Asian Development Bank, the President of the Inter-American Development Bank, the Managing Director of the World Bank Group, the Deputy Managing Director of the International Monetary Fund, and the APEC Business Advisory Council.
APEC Finance Ministers will deliver their joint statement to APEC Economic Leaders when they meet on 12 - 13 November in Honolulu.
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