APEC raises 2021 GDP forecast to 6.3%

APEC raised its GDP forecast for 2021 to 6.3% from a previous estimate of 5.7%, citing vaccine optimism and pent-up demand.

Household consumption improved in the second half of 2020, declining by -3.9% compared to -7.0% in the first half.

Investment also showed improvement, with a decline of -6.1% in H2 2020 versus -10.5% in H1.

However, significant uncertainties remain due to evolving pandemic conditions and potential job losses leading to higher inflation and suppressed consumer spending.

Weakness in investments is projected to extend into 2021, potentially affecting growth as economies navigate through resurgences of infections.