Also, moderate growth of monetary indicators, low increases in global prices and well-anchored inflationary expectations have generated contained inflationary pressures. In general, this situation is expected to continue over the period ahead. Data on third-quarter economic activity are partial and are based on indirect indicators. Their analysis suggests positive but low growth of the domestic economy over this period. Industry, agriculture and services are the sectors that have supported the economic growth, while construction does not highlight any signs of improvement in the current and expected activity. In the aggregate demand, foreign demand remained the main driver to economic growth in the third quarter. The domestic demand appears to have weakened due to lack of fiscal stimulus and sluggish private investments and consumption. Fiscal policy was consolidating in 2012. It is reflected in the 19% decline in the budget deficit of the first ten months of the year, leading to maintaining of fiscal indicators sustainability over this period. On the other hand, the performance of expenditure and budget deficit did not support the aggregate demand growth. Public spending for the first ten months of the year resulted 0.2% less than a year earlier, reflecting the low increase in the budget revenues. The latter increased at low annualised rates during the year, resulting at the end of October only 2% higher than a year earlier.
Notwithstanding all the efforts, challenges remain ahead and we will continue to address them with an aim to increase the stability and resilience of the banking system, as the key pillar of the financial system and thus contribute to stronger, but sustainable financial support of the real sector. In this light we will proceed with strengthening the supervision on systematically important banks, enhancing our macro – prudential capacity, modernizing the organizational and analytical infrastructure for crisis preparedness and resolution, contributing toward further development of alternative financial instruments, innovative financing, deepening of financial markets, and encouraging non-disruptive entrance of fintech services. Last but not least, let us not forget that investors’ decisions are information and data based. A strong portfolio of high – quality data, in line with the data international standards, is a prerequisite for investors to make their first steps in making due diligence and decide on the comparative advantage of the country. Our adherence to the highest IMF SDDS Plus standard this year, made us part of a small pool of 18 countries globally, assuring for the quality of our data and contributing to the health of the overall business environment. Of course, there are many gaps on the structural front that should be addressed, to allow for faster growth and convergence. I am more than confident that with strong commitment of all stakeholders involved, in conjunction with accelerated EU accession process, we will achieve our milestones, contributing to the wellbeing of the overall society. Thank you. 2/2  BIS central bankers' speeches