Joint statement from APEC fin ministers

KYOTO, Japan (BestGrowthStock) – Following is the text of a joint statement from a meeting of Asia-Pacific Economic Cooperation (APEC) finance ministers.

1. We, the finance ministers of the APEC economies, convened our 17th annual meeting in Kyoto, Japan, on 5th and 6th of November 2010, under the chairmanship of Mr. Yoshihiko Noda, Minister of Finance of Japan. The meeting was also attended by the President of the Asian Development Bank, and the senior management of the International Monetary Fund, the World Bank and the APEC Business Advisory Council (ABAC).

2. We exchanged views on current economic and financial developments and policy direction in the Asia-Pacific region. Recognizing APEC’s strength in consensus-building and implementing multi-year initiatives, we emphasized the importance for APEC members to take policy measures to achieve stronger, more sustainable and more balanced growth in the region.

3. The global economy is recovering from the recent financial crisis, but uncertainty remains. Growth in the region is uneven across the economies, with developing economies experiencing a strong recovery, while advanced economies are recovering more slowly. Net capital flows have returned in a significant volume to emerging economies of the region, raising the risk of capital flow volatility and increases in asset prices in some economies. Financial reforms are proceeding and we should continue to take steps to build a stronger and more resilient global financial system. We remain committed to maintaining open markets and fighting protectionism. We reaffirmed our common resolve to support the recovery in a collaborative and coordinated way.

4. As a key contribution to the discussion of the APEC Leaders’ Growth Strategy, we are submitting “The Kyoto Report on Growth Strategy and Finance” to the Leaders. In this Report, we have identified priorities for securing future growth, namely, rebalancing and strengthening global demand, pursuing sound fiscal management, and enhancing finance to key sectors such as infrastructure, small and medium enterprises, households and green investment.

5. We support the conclusions of the recent G20 Finance Ministers and Central Bank Governors Meeting in Gyeongju and will strengthen multilateral cooperation to promote external sustainability and pursue the full range of policies conducive to reducing excessive imbalances and maintaining current account imbalances at sustainable levels. We will continue to undertake structural reforms and foster job creation.

6. Because of the weight of APEC economies in the global economy, and given the importance of balanced growth in the region, it is incumbent upon each member, whether a surplus or deficit economy, to implement necessary policy measures. Economies with current account deficits will need to take steps to boost domestic saving, including through medium-term fiscal consolidation, while ensuring that consolidation is carefully sequenced, with attention to local economic conditions, so as not to derail nascent recoveries. Economies with current account surpluses need to reduce their reliance on external demand and undertake structural reforms that catalyze stronger domestic demand-led growth, such as enhancing infrastructure finance and strengthening social safety nets.

7. We will move toward more market-determined exchange rate systems that reflect underlying economic fundamentals and will refrain from competitive devaluation of currencies. Advanced economies, including those with reserve currencies, will be vigilant against excess volatility and disorderly movements in exchange rates. These actions will help mitigate the risk of excessive volatility in capital flows facing some emerging economies.

Joint statement from APEC fin ministers