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Trade in the Asia-Pacific Economic Cooperation region continues to outperform the rest of the world and weather global economic uncertainties, according to a latest report from a think tank on APEC studies.

Growth in the nominal US dollar value of merchandise trade for APEC economies moderated to 4.6 percent in May 2012, down from 12.1 percent growth in December 2011.

But it was enough to remain at the top of the heap, by comparison. The rest of the world contracted by 5.6 percent in May 2012, stated the APEC Policy Support Unit research that was presented to APEC ministers during their meeting in Vladivostok on Thursday. "Though trade performance varied across the region in the first half of 2012 due to weak global demand and sharp falls in commodity prices, APEC members' economic growth has been fairly robust and resilient," said Denis Hew, director of the independent research arm, which regularly produces trade and economic analysis based on data sourced from all 21 APEC member economies.

"Foreign direct investment across APEC economies is also encouraging," he said.

As a whole, the region accounted for nearly half of the growth of global FDI inflows in 2011.

Economic activity in the APEC region is expected to remain relatively robust in the mid-term, despite trimmed growth forecasts caused by increased uncertainty abroad.

Based on data from International Monetary Fund, member economies' real GDP growth is on pace to accelerate from 4.1 percent in 2011 to 4.2 percent in 2012 and 4.5 percent in 2013, keeping ahead of the rest of the world.

APEC members' economic growth and their trade and investment flows could be significantly impacted by downside risks related to the external environment.

However, the report suggested steps to help mitigate the risks. They included maintaining free and open markets, withdrawing existing restrictive measures and resisting new protectionist measures to bolster the global economic recovery process.

"APEC should also continue to monitor trade and investment measures by member economies," Hew said, building on the commitment made by ministers in Singapore in 2009.

(China Daily 09/09/2012 page3)