Yellen Urges APEC Finance Ministers to Promote Sustainable Growth.
U.S. Treasury Secretary Janet Yellen has called upon finance ministers from Asia Pacific Economic Cooperation (APEC) countries to enhance the productivity of their economies.
During the APEC finance ministers meeting, Yellen emphasized the significance of collaborative efforts to address global challenges, stressing the need for sustainable growth and a transition to low-carbon energy.
Yellen highlighted the economic dynamism of the 21 APEC economies and underscored their collective responsibility in achieving the goals set for the 2023 U.S. hosting year, which aims to create an “open, dynamic, resilient, and peaceful Asia-Pacific community.”
Against the backdrop of the APEC Secretariat’s projections of slowing growth in the coming year due to inflation and U.S.-China tensions, Yellen urged the group to focus on increasing potential output.
In her prepared remarks, Yellen outlined key areas for improvement, emphasizing the necessity to enhance long-term economic outlook by boosting labor supply, fostering innovation, and increasing infrastructure investment. Importantly, these efforts should be sustainable and aimed at reducing inequality.
Yellen stressed the importance of putting economies on a sustainable growth path, balancing the need for clean energy with the imperative to safeguard the planet.
Yellen also highlighted the role of emerging technologies in driving innovation while ensuring the stability of financial markets. The APEC finance ministers’ meeting preceded the APEC leaders’ summit and a crucial meeting between U.S. President Joe Biden and Chinese President Xi Jinping, seeking to ease tensions between the world’s two largest economies.
Acknowledging the challenges ahead, Yellen called for increased collaboration to bring more workers into APEC country workforces, investments in infrastructure and research, and mobilization of resources to accelerate net-zero emissions goals.
She pointed to specific initiatives, such as the Just Energy Transition Partnerships for Vietnam and Indonesia, funded by G7 countries, multilateral development banks, and private sector investors, as examples of effective collaborative efforts.
The agenda for the meeting included discussions on developing carbon markets and outlining the Treasury’s principals for financial firms’ net-zero pledges.
These pledges would require lending and investments to align with goals aimed at limiting the global temperature increase to 1.5 degrees Celsius by mid-century. Yellen emphasized the importance of “responsible development” of digital assets as part of the broader sustainability agenda.
Notably, Yellen recently engaged with her Chinese counterpart, Vice Premier He Lifeng, agreeing to intensify communication. She also urged Beijing to take action against Chinese entities supporting Russia’s efforts in the Ukraine conflict. The APEC finance ministers’ meeting served as a platform for addressing these diplomatic and economic challenges.
As the meeting concluded, Yellen was scheduled to hold a closing news conference, providing further insights into the discussions and outlining the path forward for APEC countries in achieving their economic and sustainability goals. Overall, Yellen’s message to APEC finance ministers emphasized the need for collective action, sustainable growth, and innovative solutions to navigate the complex economic landscape and global challenges.
