ASIA PACIFIC TRADE & INVESTMENT REPORT (APTIR) 2014 by UN ESCAP

On September 24, 2014, United Nations Economic and Social Commission for Asia and the Pacific
released The Asia-Pacific Trade and Investment Report (APTIR) 2014. The report shows that trade
growth in Asia and the Pacific decreased in 2013. Exports and imports growth rate in the region were
below global averages, in the last three quarters of 2013. There is only 2 percent growth in total exports
and imports of Asia-Pacific in 2013. According to the report, in spite of this slowdown, Asia and the Pacific

region as a whole has now become the largest trading area in the world, accounting for close to 38% of
world exports and 37 % of world imports. Report says China is the second-largest merchandise exporter
and third-largest merchandise importer globally. Indias merchandise exports grew by 5.5% in 2013 and
services exports grew by 3.6%. De-spite the merchandise export growth; India continues to run a trade deficit
because of higher import of gold, silver, oil & coal. Higher demand of the precious metal in the retail market drove
more import of it, and high demand of oil and coal in the power sector led higher import of those. The total trade
deficit in 2013 was $152.8 billion. In the Trade of Commercial services, the Asia-Pacific region lagged behind the
world. World export growth jumped from 2.4% in 2012 to 5.6% in 2013 but the average growth for the region
decreased from 7.4% in 2012 to 5.4% in 2013. The growth of services imports decelerated significantly from 8.4%
to 5% in 2013. With a recorded export value of $1,338 billion in 2013, the Asia-Pacific region accounted for about
29% of world exports of commercial services.

SUBHRAPRAKASH MONDAL
IIM UDAIPUR, PGP 2014-2016

Figure 1: Trade of Commercial Services

Year on Year percentage

growth
World Export growth
Asia-Pacific Region Export growth

7.4
5.6

Commercial Services Export

Other
Countries of
Asia-Pacific
Region
36%

5.4

India
11%
Japan
11%

Singapore
9%

2.4
Republic of
Korea
8%

2012

China
15%

2013

Hong Kong,
China
10%

The report says, by attracting $549 billion of FDI inflows in 2013, Asia-Pacific region FDI inflows rose by
6.6%, following a fall of 4.9% in 2012. India experienced a large expansion in FDI in-flows, with an increase
of 16.5% to $28 billion. FDI outflows from countries in the Asia-Pacific region have significantly increased
in 2013, proving that the region is an important source of FDI. Indian Multi-nationals are focusing in
mainly in Arab Country & Middle East zone. It was experienced that homegrown Indian multinationals
had been much less active in international Mergers and acquisitions than in previous years. Therefore,
the FDI outflow growth rate became -80% in 2013 due to the shrinking cross-border Mergers and
acquisitions.

SUBHRAPRAKASH MONDAL
IIM UDAIPUR, PGP 2014-2016

Key Trade and Investment Indicator

(Year on Year Percentage Growth-2013)
India

Asia-Pacific Region
16.5

5.5

2.1

3.6

4.9

4.2

2.3
-4.6

15.1
6.6

-2.7

-80

Merchandise
Exports

Service
Exports

Merchandise
Imports

Service
Imports

FDI Inflow

FDI Outflow

India

5.5

3.6

-4.6

-2.7

16.5

-80

Asia-Pacific Region

2.1

4.9

2.3

4.2

6.6

15.1

Bibliography:

1)

http://www.unescap.org/resources/asia-pacific-trade-and-investment-report-2014-

recent-trends-and-developments

SUBHRAPRAKASH MONDAL
IIM UDAIPUR, PGP 2014-2016