Since last year, the evolution of Stock Exchanges has shown that the euphoria associated with the concept of a totally new economic era has vanished, but what remains true is that a remarkable potential of economic changes remains for the future. It may help to boost labour productivity significantly on a recurring basis, and, in so doing, to boost production while preserving the economy’s competitive edge. That strategy should be pursued whilst increasing the overall competitiveness of Europe’s economy. If I refer to what we observed in the past, the French economic strategy, based on a moderation in the increase of unit costs of production, gave us an important advantage: the considerable improvement in the cost competitiveness of the French industrial sector from the mid-1980s has contributed extensively to the growth of our economy. The French economy grew faster than the other major euro area economies in recent years, while repeatedly recording a large current account surplus. This was largely because, from early 1987, production costs, measured by unit labour costs in the industrial sector, have risen significantly less in France than in the euro area as a whole. That improvement in our overall cost-competitive situation has progressively materialised into growth, into job creations and into solid external accounts. This ongoing drive to keep prices and costs in check has been accomplished thanks to the economic and monetary strategy pursued over a long period.
Goh Chok Tong: Strengthening Singapore’s position as a leading financial centre in Asia Speech Mr Goh Chok Tong, Senior Minister and Chairman of the Monetary Authority of Singapore (MAS), at the 2005 MAS Staff Seminar, Singapore, 29 November 2005. *  *  *  Let me begin by welcoming you to the 2005 MAS Staff Seminar. It has been a busy but good year for the industry and MAS. Positive global and regional outlook 2. Globally, 2005 looks set to end on a positive note. The IMF has projected world economic growth of 4.3% this year and sees the potential for further growth next year. The US economy remains resilient. It has withstood progressive interest rate hikes and the devastation caused by Hurricanes Katrina and Rita. While the oil market remains tight and the US current account and budget deficits continue to be cause for caution, the Greenspan era should end positively. 3. Asia is doing well. East Asia's combined economy has been growing by an average of 3.4% per year between 2000 and 2004. Take away Japan, East Asia's annual growth rate is even more impressive - 6.4%, well above the global average of 3.8%. East Asian countries have accumulated massive foreign reserves and now account for nearly 60% of global reserves. Global investors looking for better returns have shown strong interest in Asian equities, bonds and alternative investments. 4. The blockbusters in Asia's growth story are China and India. I have spoken about them in some detail last year.