APEC economic prospects for the year remain weak as the negative impact of the global cyclical downturn rippled through and dampened business and consumer confidence, the APEC Economic Committee said in its annual report of "APEC Economic Outlook."

The report also said that there are lingering concerns about the on-going inventory adjustment in the IT sector, more difficult financing conditions in some emerging economies, weakening corporate profitability and accompanying downward adjustment in equity prices, slower than expected recovery in the U.S. economy and continued slow growth in the euro area, and a possible slip back of the Japanese economy in the near future.

"Nevertheless, underlying inflationary pressures have been relatively subdued in the APEC region, giving room for more macroeconomic policies to counter the slowdown," Kyung Tae Lee, chairman of the Asia-Pacific Economic Cooperation (APEC) Economic Committee, was quoted as saying.

"Monetary easing and more expansionary fiscal policies in many APEC member economies should help revitalize demand in due course, " Lee said.

"Unfortunately the recent terrorist attack on the United States has overcast our near-term prospects, leading to added uncertainty about the timing and strength of the global economic recovery," he added.

"APEC Economic Outlook," an annual publication of the Economic Committee since 1995, reviews recent economic developments in the region, the economic performance and prospects of APEC members.

(People's Daily 10/20/2001)