extraction. this, in turn, has prompted strong gains in both investment spending and employment in those sectors of the economy. most sectors with a low exposure to international trade ( such as personal services ) have also experienced relatively strong levels of profitability and solid gains in employment. on the other hand, with the substantial rise in the exchange rate and increased competition from many of the asian economies, many industries with a high exposure to international trade – typically manufacturers – have faced difficult adjustments since the end of 2002. this has been reflected in lower rates of profitability, modest gains in production, and declines in employment. but overall, canada has adjusted well to the challenges of the past five years. since 2002, our labour markets have performed well – the unemployment rate is now close to a 30 - year low. and our average annual economic growth rate has been greater than the average growth rate of the g - 7 countries as a whole. that's the national picture. in many respects, saskatchewan is a microcosm of these trends. real provincial gdp growth is solid and close to the national average. in the past five years, saskatchewan has seen its labour participation rate increase significantly – from 65. 7 to more than 70 per cent – and the unemployment rate has dropped from 5. 4 per cent in february of 2002 to 4. 1 per cent last month, indicating a robust labour market. of course, saskatchewan has been helped a good deal by the increase in world commodity prices that i mentioned earlier – especially for energy, potash, and uranium, while manufacturers here have faced challenges similar to those faced by manufacturers elsewhere in canada. to summarize, the past five years have been a time of large and significant economic adjustment. despite the stresses and strains that such a change can cause, canada has done very well, all things considered. the economy is strong, canadians are working, and they have seen increases in wealth and income. what are some of the factors that explain this successful adjustment? what explains the success of the adjustment process? in an open economy like canada's, the most important factor is flexibility. by flexibility, i mean the ability of the economy to adjust to changes in circumstance – that is, for resources to shift from areas of weakening demand to areas of strengthening demand – and for the economy to return to its production potential quickly, with as little cost as possible. but flexibility doesn't just happen – it's a function of structural policies, human capital, and our business

continue to build our auckland presence – where the bulk of our regulatory interface occurs. our auckland office is ably led by an assistant governor. we have also undertaken important changes to enhance our supervisory capabilities, including launching a new enforcement department to promote compliance in regulated sectors. this is an important step as we focus on embedding a more intensive supervisory approach on the firms we regulate. our drive is to be cost effective and fit for purpose in all we do. in doing so we continue to work with a range of stakeholders, in particular through the council of financial regulators ( cofr ), on issues related to financial stability and inclusion. we have collaborative priority work streams to progress in areas such as conduct and governance, financial inclusion, climate change adaptation, digital innovation, and regulatory effectiveness and coordination. we are also actively collaborating in work on housing related matters with the treasury and the housing and urban development authority. our te ao maori strategy remains a key strategic priority for te putea matua. we have continued to ensure that the te ao maori perspective is interwoven throughout our work at the reserve bank and with our stakeholders. a good example of this is our refreshed vision and values and updated brand, to better reflect our purpose and the work we do with our partners on behalf of all new zealanders. another example is our work programme on identifying any unnecessary constraints on access to capital for maori enterprises. finally, we also maintain our focus on enabling and ensuring diversity and inclusion in our team. in line with international benchmarks we set a target of achieving a 40 / 40 / 20 gender balance ( i. e. at least 40 percent women in our workforce ), which we achieved in 2020 / 21. alongside this we have also continued to build our partnerships with maori and pacific graduate programmes. we have a long way to go, but we are committed and organised. conclusion at te putea matua, being a great team means being fit for purpose, cost effective, risk aware, and working collectively in a sustainable way. it also means being unified by our purpose – everyone knowing what to do and moving in sync in the same direction. i would like to thank our board, my colleagues and our people for their dedication, hard work, flexibility, and assistance. it is through your commitment, effort and determination that we have continued to live our purpose in supporting all new zealanders, especially during this difficult year. we are looking forward to the future. meitaki ma ’ ata 4