KUALA LUMPUR: The Asia-Pacific Economic Cooperation (Apec) region posted a 6.1% increase in economic growth in the first quarter (Q1) of 2021, bouncing back strongly from a 2% decline in Q1 of 2020.

       According to the latest update from the Apec Policy Support Unit (PSU), the forum’s research and analysis arm, this number comfortably puts the region on track to achieve growth expectations for 2021, which is estimated at 6.4%.

       The report said the high growth in Q1 of 2021 was due to several factors, including the low comparison point following substantial economic contraction a year ago as well as higher government spending given the sustained impact of the pandemic on economic activities, while domestic consumption grew considerably during this period.

       In the near term, the unit still expected sustained stimulus measures from governments to drive the region’s economic growth.

       According to the report, private consumption will also get a boost of confidence as consumers are expected to draw on their accumulated savings, bolstered in part due to cash transfers and wide-ranging subsidies to households.

       “Vaccination programmes and rollout still drive economic growth and the recovery progress in the region. We are still seeing a disparity in access to vaccination coverage across Apec; economies with faster rollouts and sustained fiscal support will recover faster and stronger, while economies that struggle with vaccine access and have limited fiscal space will take more time to recover due to these uncertainties,” said Apec PSU director Dr Denis Hew.

       Vaccination coverage is diverse, ranging from 148 doses per 100 residents to a low of only one dose per 100 residents. ― Bernama