During this period, a new credit of Lek  BIS Review 8/2004  1  70.6 billion (USD 660 million) was extended to the economy, or 45 percent more than the same period in the previous year. Based on the developments noticed during the first ten months, on the current developments of the banking system liquidity, etc., it could be summarized that monetary developments of 2003 will be a greater contribution to the consolidation of the overall macroeconomic equilibrium of the country. In order to have a clearer view of the expected economic situation by end of 2003, following is given a table showing the general indicators of the country’s economic development, including here the monetary ones as well.
The low-income population in the Asia-Pacific accounts for about 70% of the global low income population. The need for protection from illnesses, natural disasters and other perils is more acute for this vulnerable segment. Although Asia now accounts for most of the global microinsurance market, covering between 350 to 400 million people the overall participation rate is still low due to liquidity constraints in this segment of households, low financial literacy and business models that are not inclined towards such low-income segments. Innovative solutions and continued efforts to improve financial education will be needed to achieve greater inroads in this area. The trends that are shaping the socio-economic landscape in East Asia suggest continued positive growth prospects for the insurance industry. This is despite a more modest outlook for the global economy. Indeed, the insurance industry will assume a much larger role in providing the essential financial underpinnings for economic activity and social development in Asia by addressing the wide range of risks that businesses and individuals face in this new and more challenging environment. While historical experience in the development of modern insurance presents a path for the future growth of the insurance industry in East Asia, there are also other important ingredients for sustainable growth going forward. The ability of insurers to internalize the new realities of the business and to execute strategies that are aligned with these realities will provide the strongest assurance for growth with stability as the industry looks ahead to the future.