euro area itself – something which is being felt, not least, by german exporters. for another, exports to the euro area are of relatively minor importance for most regions outside europe. last year, euro - area countries imported goods worth us $ 2, 340 from outside the euro area, which corresponds to just under one - fifth of the euro area ’ s gross domestic product ( gdp ). in the first half of 2012, imports from non - euro - area countries fell by 4 %. looking at the situation the other way round, exports to the euro area account for just 4 % of the rest of the world ’ s gdp. if the emerging and developing countries are combined into a single group, the figure is somewhat higher, at 5 %. over the past few years, exports of goods to the euro area have made a positive contribution to economic growth in the emerging and developing countries, but this stimulus is now absent. in nominal terms, the lack of this growth impulse explains only about a tenth of the current slowdown in growth in the emerging market economies and developing countries. for brazil, the euro area is of even less importance as a sales market. exports to the euro area account for no more than 2 % of gdp. with an export share of 10 % of gdp, brazil is, anyway, a rather closed economy. with regard to the currently quite marked slowdown in growth in brazil, other factors are therefore of greater relevance. this significant growth slowdown in the large emerging economies is due mainly to specific, home - grown factors. here in brazil, the deceleration was especially pronounced in industry. one major reason for the lull since 2010 is the loss of price competitiveness due to the appreciation of the brazilian real. another factor, admittedly, is that real earnings in the manufacturing sector have also gone up sharply over the past few years. you all know that brazil is not a low - wage country. as a result, domestic goods are increasingly being substituted by imports. the congested infrastructure ranks as a further structural obstacle to macroeconomic development. the fact that there are said to be roughly as many helicopter taxis in sao paulo as there are helicopters in all of germany is due, if nothing else, to your city having gained a reputation for being faced with frequent traffic jams. logistics experts say that deliveries of goods in brazil take twice as long over the same distance as in china. whether or not the announced government investment programme to modernise the road and rail networks

at 96. 0 % in 2014 and to decline to 95. 4 % in 2015. in view of still rather high debt ratios and to improve fiscal sustainability, euro area countries should not unravel progress made with fiscal consolidation and should comply with their commitments under the stability and growth pact. at the same time, comprehensive and ambitious structural reforms in product and labour markets are warranted to lift the euro area ’ s growth potential, bis central bankers ’ speeches improve its adjustment capacity and reduce the high unemployment facing many euro area countries today. to this end, the governing council concurs with tuesday ’ s ecofin council communication that decisive policy action is needed in countries where macroeconomic imbalances hinder the smooth functioning of economic and monetary union. we are now at your disposal for questions. bis central bankers ’ speeches