Jakarta, May 15 -- Economic growth in the APEC region is expected to slow sharply to 2.6 percent this year due to escalating trade tensions and policy uncertainty weighing on investment and trade.

The forecast was made in a new economic report released by the APEC Policy Support Unit ahead of the Ministers Responsible for Trade Meeting in Jeju, South Korea, on Thursday.

While challenges persist, the report highlights the opportunity for member economies to strengthen cooperation and build resilience through structural reforms and open trade.

Economic growth in the APEC region is projected to moderate to 2.6 and 2.7 percent in 2025 and 2026, a sharp drop from the 3.6 percent growth recorded in 2024.

The downward revision underscores th...