APEC Finance Ministers address fiscal stimulus, exit strategies
Singapore, 12 November 2009 - In a statement issued today, APEC Finance Ministers tackle challenges facing the world economy in the post-crisis period:
"...restoring growth potential; successfully exiting the extraordinary fiscal, financial and monetary policy measures; implementing credible medium-term fiscal consolidation strategies; and meeting the region?s massive infrastructure needs."
On fiscal stimulus and exit strategies:
"We agreed that the pace of implementing exit strategies should take into account different stages in the economic recovery of member economies, the type of policy measures to be phased out, and any spillovers caused by our strategies. However, actions that would strengthen fiscal credibility without negatively affecting demand - such as measures to strengthen fiscal frameworks and some pension and health sector reforms, including those that will be phased in gradually - should start to be implemented as soon as possible."
On reforms to support strong, sustainable, and balanced growth:
"APEC members with sustained, significant external deficits pledge to undertake policies to support private savings and undertake fiscal consolidation while maintaining open markets and strengthening export sectors."
"APEC members with sustained, significant external surpluses pledge to strengthen domestic sources off growth. According to circumstances in inpidual economies, this could include increasing investment, reducing financial market distortions, boosting productivity in service sectors, improving social safety nets, and lifting constraints on demand growth."
On strengthening financial systems and facilitating finance for sustained growth:
"We committed to strengthen financial supervision to prevent the re-emergence in the financial system of excess credit growth and excess leverage and undertake macro prudential and regulatory policies to help prevent credit and asset price cycles from becoming forces of destabilisation."
On infrastructure:
"The infrastructure needs of the Asia-Pacific region over the next decade are expected to be some USD 750 billion a year, as economies replace aging infrastructure and build new infrastructure to keep pace with rapid economic development?
"...we noted the important role of the MDBs in helping economies upgrade necessary infrastructure in the region?"
"We welcomed the progress in implementing commercially viable infrastructure projects and practical public-private-partnership models to attract funding from private investors."
To view the 16th APEC Finance Minsters? Meeting Joint Ministerial Statement, go to:
http://www.apec.org/Meeting-Papers/Ministerial-Statements/Finance/2009_finance.aspx