mr noyer gives an address on the outlook for the euro area economy and its financial markets speech by mr christian noyer, vice - president of the european central bank, at the “ ceremonie de remise des victoires des sicav ”, paris, on 24 february 2000. * * * i am very pleased to address this distinguished audience of fund managers today and to witness the presentation of awards for excellence in financial innovation. it is my belief that the process of financial innovation in general, as celebrated in today ’ s ceremony, deserves particular attention. this is because improvements in the working of financial markets will eventually improve the allocation of financial resources in the economy, which will in turn be beneficial for sound economic growth over the medium term. 1. trends in 2000 for the euro area economy in the first part of my address today, i would like to discuss the major trends in monetary, economic and financial developments in the euro area in 2000. i will examine these trends within the framework of the eurosystem ’ s monetary policy strategy. the primary objective of the eurosystem is to maintain price stability over the medium term. price stability is defined as a year - on - year increase in the harmonised index of consumer prices ( hicp ) for the euro area of below 2 %. the assessment of risks to price stability in the context of the monetary policy strategy is based on two pillars. first, a reference value of 4½ % for the growth rate of the broad monetary aggregate m3 ; second, a broadly based assessment of the outlook for price developments and risks to price stability in the euro area. to begin with, let me consider the first pillar of the strategy. in 1999, the three - month average of annual percentage growth rates of m3 was consistently above the reference value. over recent months, both money growth and the growth of credit to the private sector signalled generous liquidity conditions in the euro area and were seen as posing upward risks to price stability. let me now turn to the second pillar of the monetary policy strategy, the broadly based assessment of the outlook for price developments and risks to price stability in the euro area. various macro - economic indicators available for the euro area consistently point towards a strong cyclical upswing in the euro area in 2000. these expectations for developments in economic activity in the euro area are supported both by external developments, as the outlook for global economic activity is improving, and developments internal to the euro area. at the same time as

##r ), which stood at us $ 108. 9 billion as of end - 2021, continue to provide ample cushion against unforeseen demand for fx liquidity. the gir level is equivalent to 10. 3 months ’ worth of imports of goods and payments of services and primary income. it is also about 6 to 9 times the country ’ s short - term external debt based on residual and original maturity, respectively. amid the strong rebound in external demand in key trade partners, the country ’ s exports of goods increased by 16 percent in january to september 2021. meanwhile, following the gradual resumption of domestic economic activities and restocking of inventories, imports of goods grew at a much faster rate of 30. 2 percent in the same period. this resulted in a wider trade deficit at us $ 36. 6 billion and has caused the overall bop position to reverse to a deficit of us $ 665 million in the first nine months of 2021 from a us $ 6. 9 billion surplus in the same period last year. the country ’ s external sector has remained supported by structural fx flows from overseas filipino remittances, business process outsourcing receipts, and foreign direct investments. cash remittances from overseas filipinos ( ofs ) are steadily flowing in with a 5. 2 percent growth posted in january to november 2021, from a slight contraction in 2020. meanwhile, bpo services exhibited strong recovery in the same period at 8. 3 percent as the sector was quick to adjust to the new normal work set up. net foreign direct investments ( fdi ) in january to october 2021 increased by 48. 1 percent due to positive foreign investor sentiment and improving confidence on the country ’ s growth prospects. this bodes well for job creation. 2 / 4 bis central bankers'speeches moreover, favorable external debt profile acts as a cushion against external shocks. external debt - to - gdp ratio settled at 27. 3 percent as of end - september 2021 compared to about 60. 0 percent in mid - 2000s. given that bulk of the country ’ s external debt have medium and long - term maturity, and are fixed interest rate bearing, debt repayment schedule is more manageable and financially sustainable over the medium to long term. considering recent economic developments and significant progress in mass vaccination, we are optimistic that there is sufficient support for the country ’ s recovery this year and in the near term. the management of risks, the expected revitalization of key industries from