The Singapore economy is facing a demographic double-whammy: the effects of low birth rates over the last two decades combined with the entry into retirement of the baby boom generation. •  Singapore’s total fertility rate has been very low, at about 1.4 over the last 20 years. •  Baby boomers entering the “65 & above” age group, where significant numbers retire and leave the workforce, will surge by 65% during 2011–2020. 2  BIS central bankers’ speeches  The overall impact of this double-whammy is unmistakeable: Singapore’s resident labour force will start to shrink over the next few years, even after taking into account the inflow of net migrants. Singapore had previously supplemented its resident labour force with foreign workers. Total labour force growth averaged 3.7% per annum in the last decade (2001–2010); almost half of which was contributed by foreign workers. This is unsustainable. Foreigners (excluding foreign domestic workers) already account for about one-third of the total labour force in Singapore. Singapore is heading towards a demographic cliff. It cannot be avoided. The question is whether the economy achieves a soft landing or a hard landing. If we restructure our economy and raise our productivity, Singapore can grow at a slower but more sustainable pace with a moderate increase in costs and prices. If we do not, costs will continue to escalate, competitiveness will erode, and growth will dip sharply amidst higher inflation. The transition to productivity-led growth will not be easy.

Our projections have not changed: the Bank of Albania expects economic activity to improve progressively over the medium-term horizon. This performance will continue to be sustained by stimulating financial conditions and growth of private domestic demand. It will contribute to the improvement of economic and financial equilibriums in Albania and to the return of inflation to target within 2018. BIS central bankers’ speeches  1  The realisation of these objectives requires maintaining the actual mix of economic policies. The monetary policy will maintain the stimulating trend over the medium-term horizon, while the intensity of the monetary stimulus will not decrease for some quarters ahead. On the other hand, the fiscal policy should maintain its consolidating trend. The balance of risks related to expected developments remains on the down side. The expansion of economic activity continues to be decelerated by the unfavourable economic performance in the euro area, which is further complicated by the Brexit, as well as by the behaviour of economic and financial agents, who continue to show reluctance in undertaking long-term business projects. Against this backdrop, the Bank of Albania deems that economic policies and structural reforms should focus on: –  Maintaining and further strengthening the economic and financial stability. –  Accelerating structural reforms, especially with regard to: improving the legal setting and business climate; encouraging domestic and foreign investments, completing the infrastructure; enhancing productivity; and, improving the labour market. –  Expanding crediting, to support the country's medium-term development.