Our output and demand outlook is fairly unchanged. There are still risks in our external scenario, even if its recent evolution surprised us for the better. Allow me some final reflections. Final reflections I will end with some thoughts on the capacity of monetary and fiscal policy to address the economic cycle. I think we must because, after years of slow growth and within a context of increasing social demands, pressures on both have become stronger and the way we decide to confront them will be crucial in the future of our economy and our country. I see three main challenges: First, it is obvious that neither monetary nor fiscal policy can flatten out the business cycle, much less affect the economy’s trend growth. But they certainly can smooth the cycle and help the economy make sound adjustments when suffering a domestic or external shock. Anyway, the capacity to smooth the cycle is proportional to the medium-term sustainability of these policies. Why? It is very simple: economic decisions —think of investment, for example— depend not only on such policies’ immediate effects, but also on how the various economic agents expect them to continue to affect the economy in the future. Thus, even if we believe that the effects of some policy action can be very powerful, if the agents consider that implementing that policy will be inconsistent with the macroeconomic equilibria, its effects will be diminished and may even be counterproductive.
Connecting Global Markets Supporting Asias Growth  Page 1 of 7  "Connecting Global Markets, Supporting Asia’s Growth" - Presentation by Mr Ravi Menon, Managing Director, Monetary Authority of Singapore, at Nomura Investment Forum Asia on 5 June 2018  Ladies and gentlemen, good morning. Thank you for inviting me to speak at this important investment forum. Asia’s dynamism and growth will be the defining investment theme of the next decade. •  Asian assets have become an essential component of a balanced and diversified portfolio. • The expansion of Nomura’s forum from an Asian equity event previously to one that showcases the full suite of investment products in the region reflects the growth in investment opportunities in Asia. •  Like Nomura which serves investors looking to invest in Asia, Singapore aims to connect investors to opportunities in the region. Asia will remain the fastest growing region in the world over the next five years. •  The IMF puts Asia at the top of the global growth league, with a projected annual growth rate of 6.4%. • India at 7-8% p.a., China at 6% p.a., and the ASEAN-5 economies – Indonesia, Thailand, Malaysia, Philippines and Singapore – at around 5% p.a. The size of the Asian middle class is set to double by 2025, from 2015 levels.