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Minister Hernandez: Promote Greater Financial Inclusion for Women
Issued by the Policy Partnership on Women and the Economy“If women are not included, our economies will lose the potential of almost 50 percent of its population,” said Angela Teresa Hernandez Cajo, Peru’s Minister of Women and Vulnerable Populations, as she opened a public-private sector dialogue on championing women’s economic empowerment in Arequipa on Wednesday.
The dialogue focused on the financial inclusion of women as a pillar of economic development as well as the role of technology in reducing and eliminating violence against women.
In her remarks, Minister Hernandez explained that although financial inclusion is a powerful tool that can transform lives and promote equality and economic growth, only two out of 10 women in Latin America are fully included in the financial system.
“We have a lot to do. There are still laws in several of our economies that require women to seek permission from their spouses to work or ask for their signature to access the financial market,” said Minister Hernandez.
According to the APEC Women and the Economy Dashboard, only nine economies have laws that prohibit discrimination in access to credit by creditors on the basis of sex or gender.
“When they manage to access credit, the amounts usually do not meet their financial needs, because they can hardly demonstrate properties or significant or sustained incomes to support their requests. Starting, expanding, strengthening and formalizing businesses prove to be complex challenges and difficult to access for women,” Minister Hernandez added.
“Barriers persist that hinder equal participation of women in economic growth. Thus, they dedicate more hours to unpaid care work than their male counterparts without services that allow them to join paid work,” Minister Hernandez highlighted.
She stressed that the financial system plays a crucial role as financial inclusion generates a substantial increase in women’s economic participation, both through their companies and ventures, as well as through occupying decision-making positions and leading productive and commercial processes of broad impact in member economies.
“It is not possible to achieve sustainable development if women are excluded because society assumes that they must postpone their expectations and plans to assume the burden of care as an exclusive responsibility of theirs,” expressed Minister Hernandez
Experts at the dialogue also discussed the role of technology and innovation to prevent violence against women and girls, sharing best practices and examples on the use of artificial intelligence and policies that promote violence-free environment, as well as fostering public-private partnership to advance these efforts.
“The use of technological tools can introduce risks and produce negative impacts on the population and businesses, which demands sustained preventive actions. Peru has various experiences in which technology and the internet are used to prevent acts of violence,” said Minister Hernandez.
“We are here not just as participants, but as an active part of an alliance that commits us to forge a future of economic empowerment for women and their greater integration into the Asia-Pacific economy—where equality is consolidated as a tangible reality that positively changes the lives of women, their families and therefore, our economies and societies,” Minister Hernandez concluded.
For further details, please contact:
Masyitha Baziad +65 9751 2146 at mb@apec.org
Michael Chapnick +65 9647 4847 at mc@apec.org
APEC GDP Expands to 3.5% in 2023, Uncertainties Loom Large
Issued by the APEC Policy Support Unit
APEC’s gross domestic product grew by 3.5 percent in 2023 compared to 2.6 percent in 2022. The expansion was driven by robust household spending amid high consumer confidence, according to the latest report by the APEC Policy Support Unit.
“APEC’s economic growth is outpacing the 3.2 percent global growth,” said Carlos Kuriyama, director of the APEC Policy support Unit. “Government spending as well as healthy services sector, especially the solid recovery of travel and tourism have also contributed to this expansion.”
“However, we are seeing a moderation in economic growth in 2025 and 2026 due to geopolitical uncertainties, trade protectionism as well as fluctuations in commodity prices. These challenges call for stronger multilateral cooperation between member economies,” Kuriyama added.
The inflation rate has eased steadily, posting an average of 3.9 percent last year compared to 5.9 percent in 2022. It is expected to decrease further to 2.9 percent in this year. However, the report cautioned economies to not let their guards down.
“With inflation showing signs of moderation, economies are expected to lean toward easing their monetary policy rates to support growth,” said Rhea C. Hernando, an analyst with the Policy Support Unit.
“Nevertheless, economies need to stay alert to dampen inflationary pressures that could come from possible supply chain disruptions such as reduced crude stock in key oil-producing economies, alongside ongoing geopolitical issues as well as exchange rate movements,” Hernando added.
The report noted that in the past 12 months, 17 currencies in the APEC region have depreciated against the US dollar, ranging from -2.1 percent to -16.7 percent as of April 2024.
Another development to watch is the extended drought and increased maritime risks observed at the Panama and Suez Canals. These choke points have led to a significant escalation in freight costs, reaching their peak in late January 2024 and persisting at levels 50 percent higher than usual, as of April 2024 compared to a year ago.
“Uncertainties have dampened trade activity in 2023, affecting spending decisions and causing sluggish demand,” added Glacer Niño A. Vasquez, a researcher with the Policy Support Unit.
“Accumulation of restrictive and unpredictable trade policies such as anti-dumping measures, tariffs and countervailing duties continued to increase, which can further curb trade activity,” Vasquez said.
Trade numbers are reported to have contracted in 2023 although the report foresees a rebound in the horizon. The volume of APEC’s merchandise exports grew marginally by 0.3 percent while imports contracted by 1.4 percent. The value of merchandise trade fell by -6 percent for exports and -6.7 percent for imports.
“Looking ahead, strengthening cooperation in the face of uncertainties is critical to overcoming obstacles and continuing the progress toward sustainable and inclusive growth that we have made since the COVID-19 pandemic,” Kuriyama said.
“By remaining vigilant, reducing debt and rebuilding buffers, implementing productivity-enhancing structural reforms, and deepening cooperation, APEC economies can effectively navigate the complexities of the current landscape, strengthening economic fundamentals and regional ties for a future that is inclusive, sustainable and prosperous,” he concluded.
For more information on the APEC Regional Trends Analysis, May 2024, visit this page.
For further details, please contact:
Masyitha Baziad +65 9751 2146 at mb@apec.org
Michael Chapnick +65 9647 4847 at mc@apec.org
APEC Drives Toward a Sustainable Electric Vehicle Supply and Value Chain
Issued by the APEC Automotive Dialogue
APEC is off to the races with its effort to develop a more sustainable electric vehicle supply and value chain, tackling issues such as the future of mobility and ensuring the inclusion of micro, small and medium enterprises both regionally and in transportation networks.
Peru’s Minister of Production, Sergio Guerrero, in his remarks at the Automotive Dialogue in Arequipa, reaffirmed his commitment to generating policies that contribute to the development of the industry and an innovative productive sector with greater technological and sustainable content, thus generating greater and better opportunities for small and medium-sized companies.
“With this objective in mind, we are promoting innovation and technology transfer so that companies incorporate quality standards in their production processes and thus be able to participate under better conditions in global trade,” Minister Guerrero said.
“In this sense, we believe that this space for public-private exchange will be of great value for the design and implementation of better policies that have an impact on the automotive sector,” Minister Guerrero added.
The Automotive Dialogue is a unique forum bringing together senior industry representatives and government officials to exchange perspectives on developments in the automotive industry in the region. Its goal is to foster integration and the full development of the competitive advantages of the regional industry.
The shift to electrification and energy transition has triggered an increase in the demand for copper, a critical component for lithium-ion batteries. Peru is the world’s second biggest producer of copper, with production expected to reach 3 million metric tons this year.
“The previous session of the Automotive Dialogue focused on addressing climate change objectives. We now aim to emphasize and identify the next steps to foster competitiveness and capacity building among micro, small and medium enterprises for their integration into APEC’s productive chain,” said Luis Garcia, the government co-chair for the Automotive Dialogue.
"Promoting inclusion in the automotive supply and value chain contributes to broader economic growth and helps mitigate risks associated with over-reliance on a limited number of suppliers or regions, ensuring a more resilient and flexible supply chain that can adapt to changing market conditions,” Garcia added.
“The automotive sector is a fundamental part within the structure of Peru’s economy as it creates job, provides the transfer of technology and attracts investment,” said Karsten Kunckel, the industry co-chair of the Automotive Dialogue.
“However, the unregulated growth of vehicles fleet has caused several problems such as higher levels of environment pollution, vehicle accidents and traffic congestion,” Kunckel added, explaining that public policy that supports modernization will support the reduction of environmental impacts of these vehicles.
The next dialogue will be hosted by Peru in Lima on 18-19 August.
For further details, please contact:
Masyitha Baziad +65 9751 2146 at mb@apec.org
Michael Chapnick +65 9647 4847 at mc@apec.org
