The rate of inflation has been posting very moderate figures since autumn last year as a result of the removal from the index of the base effects linked to fiscal consolidation; certain temporary factors, such as those relating to energy price developments; and other more durable factors, relating to the economy’s excess capacity, the reduction in unit labour costs and the relative sluggishness of spending. For the remainder of the year the inflation rate is expected to hold at low levels, below the euro area average, thereby permitting further headway in gains in competitiveness with which to entrench a stronger recovery. Low inflation is conducive to gains in income purchasing power, although the counterpoint to this is the greater difficulty this adds to further progress in household and corporate deleveraging. In the more immediate future, the advances made by the Spanish economy augur a firming of the gradual path of recovery, underpinned by greater confidence, a progressive easing in financial tensions and a gradual improvement in the labour market. A crucial role will have to be played here by the re-balancing processes under way in the Spanish economy, especially the redressing of the private sector’s financial position and fiscal consolidation. The successful culmination of these processes is pivotal for rooting the recovery in domestic and external confidence and for ensuring the external funding flows that are vital for making sustained medium-term growth possible.

Asia’s transition to sustainability has to be progressive yet determined – through ever deeper shades of green. There is considerable scope to make Asian cities greener and cleaner – by tapping on energy-eﬀicient technologies and renewable energy solutions. Asia is also well-positioned to reap the vast potential of renewable energy. Large-scale solar farms have already become a common sight in Asia. According to the International Renewable Energy Agency, Asia is poised to become a world leader in wind energy by 2050. https://www.mas.gov.sg/news/speeches/2020/harnessing-the-power-of-finance-for-a-sustainable-future  2/13  14/10/2020  “Harnessing the Power of Finance for a Sustainable Future”- Keynote Speech by Mr Ravi Menon, Managing Director, MAS, at the Finan…  A progressive transition to a low-carbon economy is consistent with inclusive economic growth. According to the Global Commission on the Economy and Climate, bold climate action could generate more than 65 million new low-carbon jobs globally in 2030. [2] Renewable energy projects, energy-eﬀicient retrofits, and green construction are labour intensive in the short run and a good means of creating jobs. [3] SUSTAINABLE SINGAPORE  Singapore has much at stake in global eﬀorts to mitigate climate risk. We are a tropical island smaller in size than London, with most of the country lying just 15 metres above sea level. If temperatures were to soar or sea levels rise, our very existence could be in question. Singapore has always been committed to the idea of sustainability. Right from the 1960s, as a newly independent developing country, we pursued sustainable development: economic growth with environmental protection and social inclusion.