juyeol lee : prospects and challenges for sustained growth in asia welcoming remarks by mr juyeol lee, governor of the bank of korea, at the 2017 mosf - bokimf - piif international conference “ prospects and challenges for sustained growth in asia ”, seoul, september 7, 2017 * * * ladies and gentlemen, honored guests! i am delighted to bid you all a sincere welcome to this conference, hosted jointly by the ministry of strategy and finance, the imf, the peterson institute for international economics and the bank of korea. let me first express my special gratitude to managing director christine lagarde, who is here to represent the imf directly despite her tight schedule. i wish to thank as well president adam posen of the peterson institute for international economics, and director changyong rhee of the asia and pacific department of the imf, who have worked so hard to arrange the joint hosting of this conference starting from the initial planning stage. appreciation also goes to all of our moderators, presenters and discussants, including first vice minister hyoung - kwon go, who delivered the welcome address just before, and imf economic counsellor maurice obstfeld, who will deliver the dinner speech tonight. as we are all well aware, the asian economy has sustained a rapid rate of growth over the past 50 to 60 years, and in doing so served as a locomotive driving growth in the world economy overall. we can look at this as a result of success in the export - led growth strategy, centering around the manufacturing industry and based on surplus labor as well as late - comers ’ advantages. during this time, the economic growth pattern in asia has been that when the economies in the countries leading growth have entered their mature stages, the later - developing countries have moved into their places and asia as a whole has sustained its high growth. japan came first, to be followed in turn by the so - called four dragons, and then china. now it is india and the asean countries that are emerging as new runners. in light of this, we expect going forward that the asian economy will sustain its role as the engine of world economic growth for some time, while showing dynamism centering around later - developing countries. but there are also not a few claims that this growth strategy has reached its limits. as asian economies have gradually entered their mature stages, it has become difficult for them to sustain extensive growth strategies based on increasing their production factor inputs.

##ing operations over the life of the respective tltro. for banks whose eligible net lending exceeds a benchmark, the rate applied in tltro iii operations will be lower, and can be as low as the average interest rate on the deposit facility prevailing over the life of the operation. the maturity of the operations will be extended from two to three years. fifth, in order to support the bank - based transmission of monetary policy the governing council decided to introduce a two - tier system for reserve remuneration in which part of banks ’ holdings of excess liquidity will be exempt from the negative deposit facility rate. separate press releases with further details of the measures taken by the governing council will be published this afternoon at 15 : 30 cet. the governing council reiterated the need for a highly accommodative stance of monetary policy for a prolonged period of time and continues to stand ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner, in line with its commitment to symmetry. 1 / 3 bis central bankers'speeches today ’ s decisions were taken in response to the continued shortfall of inflation with respect to our aim. in fact, incoming information since the last governing council meeting indicates a more protracted weakness of the euro area economy, the persistence of prominent downside risks and muted inflationary pressures. this is reflected in the new staff projections, which show a further downgrade of the inflation outlook. at the same time, robust employment growth and increasing wages continue to underpin the resilience of the euro area economy. with today ’ s comprehensive package of monetary policy decisions, we are providing substantial monetary stimulus to ensure that financial conditions remain very favourable and support the euro area expansion, the ongoing build - up of domestic price pressures and, thus, the sustained convergence of inflation to our medium - term inflation aim. let me now explain our assessment in greater detail, starting with the economic analysis. euro area real gdp increased by 0. 2 %, quarter on quarter, in the second quarter of 2019, following a rise of 0. 4 % in the previous quarter. incoming economic data and survey information continue to point to moderate but positive growth in the third quarter of this year. this slowdown in growth mainly reflects the prevailing weakness of international trade in an environment of prolonged global uncertainties, which are particularly affecting the euro area manufacturing sector. at the same time, the services and construction sectors show ongoing resilience and the euro