Much of the increase in debt issuances here was by Asian issuers—mostly from China, Indonesia and India—raising debt capital in Singapore for the first time. Green bonds are also gaining traction, with local and foreign issuers issuing over $ billion of green bonds here. The life insurance industry is doing well, with net premiums growing by 16% p.a. over 2016 and 2017. Growth was boosted by Asian consumers demanding more savings and investment products in search of yield. Non-life insurance business is, however, facing structural challenges and weak growth. Net non-life premiums grew by just 2% p.a. over 2016 and 17. 7 / 11  BIS central bankers' speeches  Business conditions have been challenging globally, due to excess capacity and downward pressure on premiums. But Singapore remains attractive as the premier reinsurance hub in Asia. Global reinsurance players such as Swiss Re and Munich Re have recently set up their regional headquarters here. And we are making a push into alternative risk solutions such as risk pools and insurancelinked securities or ILS. Foreign exchange trading declined last year although we remain the third largest FX centre globally. Singapore’s average daily FX trading volume grew by 20.5% in 2016 but declined by 6.7% in 2017. This was mainly due to lower volatility in key currencies such as the Japanese Yen; and some temporary trading desk turnover which has since been filled.
The global economy is also being supported by accommodative macroeconomic policies. Monetary policy remains highly accommodative in the Eurozone and Japan. Fiscal stimulus in the US will more than offset the gradual unwinding of monetary accommodation. Across the major economies, labour markets are strengthening and wages are rising, underpinning consumer demand. The global growth cycle has matured and is probably past its peak. While growth remains healthy, it has ceased to accelerate, particularly in the Eurozone and Japan. In the Eurozone, the initial spurt in domestic spending last year has stepped down to a more sustainable pace. In Japan, the fiscal boost is over. 1 / 11  BIS central bankers' speeches  The US economy, albeit still growing strongly, is already at full employment. At least part of the fiscal stimulus is likely to be dissipated through higher inflation. In China, investment growth has slowed, with the shift in policy focus to addressing the country’s vulnerabilities, such as high levels of indebtedness and excess capacity. From a sectoral perspective, the global tech cycle has moved into a consolidation stage, with inventory build-up fading. The Global Manufacturing PMI has eased in recent months to 53.1 in May, although it remains in the expansionary zone. Tail risks to global growth have grown significantly over the last six months. Earlier this year, I described the “Goldilocks” state of the global economy—healthy growth, low inflation, and easy financial conditions.