Recent developments and outlook for the Spanish economy Turning to the Spanish economy, so far in 2018 the expansionary phase has continued, albeit at a lesser pace than in previous years. Real GDP growth stood at 2.5% year-on-year in the third quarter, following increases equal to or higher than 3% in the three preceding years (see Chart 5). This slowdown in growth, which the Banco de España has been anticipating in recent quarters, is partly in response to the international environment, where developments have been somewhat less positive this year, as I previously described. In any event, the baseline scenario for growth in the Spanish economy in the coming years is consistent, as it is in the 4/14  euro area as a whole, with growth rates running above potential and, therefore, with an increasingly positive output gap. As to consumer prices, the dynamics continue to be greatly affected by the fluctuations in the energy component (see Chart 6). The latest available figures, for October this year, show a year-on-year increase in the overall harmonised index of 2.3%. However, core inflation remains moderate, at around 1%. As from the final stretch of the year, a progressive reduction in the contribution of the energy component is projected, which will tend to be offset by the gradual strengthening in the core component, in step with the foreseeable widening of the positive gap between actual and potential output. Spanish economic activity continues to be underpinned by easy financial conditions.
For instance, Zambia, has successfully managed to stabilize the key macroeconomic variables. For the first time in 30 years, inflation managed to fall to its lowest levels while the exchange rate has been relatively stable whilst reflecting market fundamentals. Further, the lending interest rates have been declining in response favorable macroeconomic environment. Notwithstanding the improved macroeconomic environment, the Zambian Government is aware and committed to resolving the remaining challenges facing the banking and financial services industry. Accordingly, Government adopted a 5-year Financial Sector Development Plan (FSDP), which aims, amongst other things, at promoting the development of a stable, sound and market based financial system. One of the key recommendations of the FSDP is establishment of a credit reference bureau in order to improve the credit culture in Zambia. In June 2006, the Bank of Zambia licensed one company to provide credit referencing services and commercial banks are concluding a service level agreement with this company that will allow the bureau to serve as a clearinghouse for credit history information and promote the ability of lending institutions to share both positive and negative data about their borrowing customers. BIS Review 36/2007  1  Ladies and Gentlemen, this development will address one of key structural problems that the baking sector has faced for a long time.