As MAS Chairman Mr Tharman Shanmugaratnam puts it in his Foreword to this year’s Annual Report: “MAS has progressively over the five decades become a central bank and integrated financial supervisor of repute amongst its international peers, a source of confidence domestically, and an active partner with the industry in developing opportunities for Singapore’s growth as an international financial centre.” My colleagues and I are deeply conscious of the legacy which we have inherited and will continue to do our best for Singapore: to secure for Singaporeans a low rate of inflation; to preserve the purchasing power of Singapore’s official foreign reserves; to keep Singapore’s financial system safe and sound; and to grow Singapore as a vibrant international financial centre. With that, let me close my remarks. Thank you. 1 June 2021 Consensus Forecasts. 2 Comprising Indonesia, Malaysia, Thailand, the Philippines and Vietnam, and weighted by shares in  Singapore’s non-oil domestic exports. 3 Purchasing Managers Index which tracks expectations for future output. 4 Future output sub-indices drawn from the composite PMIs for China and Hong Kong. For all other Asia ex-Japan  economies, the manufacturing future output sub-index is used. 5 June 2021 Consensus Forecasts weighted by Singapore’s non-oil domestic exports shares. 6 MAS Macroeconomic Review April 2021. 7 DBS Bank, Oversea-Chinese Banking Corporation, United Overseas Bank, Citibank, Malayan Banking Berhad,  Standard Chartered Bank, and the Hong Kong and Shanghai Banking Corporation.
2.0  Recent economic developments  2.1  Real Gross Domestic Product (GDP)  During the period 2001-2007, growth in real Gross Domestic Product (GDP) averaged about 5.1% per annum, largely due to investment in the mining, tourism, construction and transport  BIS Review 76/2008  1  and agriculture sectors. This has set a strong basis for further favourable economic growth in the medium to long-term. Thus GDP growth is projected to rise by no less than 7.0% in 2008 and beyond. Consistent with the developments in the economy, GDP per capita rose to US $ in 2007 from US $ in 2001. 2.2  Interest rates  Commercial banks’ lending rates have also been declining, though not as fast as the reduction in inflation and Treasury bills rates. For instance, the commercial banks average lending rate fell from 54.6% in December 2001 to 24.4% in December 2007. Lower lending rates are expected in the current environment of low inflation and will contribute to reducing the cost of doing business in Zambia. 2.3  Inflation  Inflation has declined from 18.7% recorded in 2001 to single digit level of 8.2% in 2006 and 8.9% in 2007. It is projected to slow down further to 7.0% by December 2008. This inflation outturn was largely credited to the conduct of appropriate monetary policy coupled with prudent fiscal policy and relative stability of the Kwacha, assisted by lower food prices following the favourable 2005/06 and 2006/07 farming seasons.