long - term projections of demographic trends recently released by the national institute of population and social security research, the rate of decline in the number of workers will increase further to 0. 7 percent in the 2010s, 0. 8 percent in the 2020s, and 1. 2 percent in the 2030s. meanwhile, although the rate of growth in productivity has fluctuated due to the effects of the lehman shock, the recent trend is 1 percent on average in the past twenty years and about 1. 5 percent on average for the period in the 2000s before the lehman shock. the rate of growth in productivity in japan itself is comparable to those of other g - 7 economies and was highest in the period in the 2000s before the lehman shock. however, adding this rate of growth in productivity to the rate of decline in the number of workers leaves us with a grim outlook ; that is, not only will the annual rate of economic growth in the 2010s remain around 0. 5 percent, but it may decline further in the longer run. how can we strengthen the economy ’ s growth potential? first, while it is difficult to induce a dramatic increase in the number of workers, it is still possible to slow the pace of decline in the number by making it easier for elderly people and women to participate in the workforce. nevertheless, the key to strengthening growth potential lies in efforts to raise productivity growth. in doing so, firms ’ efforts to capture global demand and cultivate new diversifying domestic demand become necessary. on the policy front, it is important to take measures such as deregulation in order to create an environment that encourages firms to take on these challenges. financial institutions ’ expertise in identifying good business opportunities and providing risk money also become important with regard to providing financial support to as for various measures for the rate of growth in productivity, see chart 13 of masaaki shirakawa, " deleveraging and growth : is the developed world following japan's long and winding road?, " lecture at the london school of economics and political science ( co - hosted by the asia research centre and sticerd, lse ), january 10, 2012. http : / / www. boj. or. jp / en / announcements / press / koen _ 2012 / data / ko120111a. pdf bis central bankers ’ speeches firms in the course of making such efforts. above all, it will be vital for society as a whole to realize the harsh reality and critical issues facing japan ’

of public finances, which will be crucial not only in spain but in the entire euro area, for confidence to be restored. conclusions as i noted at the beginning of this speech, the current environment is clearly much more challenging than it was five years ago. at that time the question was whether economic recovery in the euro area was sufficiently robust. currently, we are still in the downturn phase – a downturn that globally is proving to be the deepest since the second world war. while there are first signs that the pace of economic weakening is decelerating, we must remain alert. we are in uncharted waters, and there are still risks of a sudden emergence of unexpected financial turbulence. this being said, the overarching aim must be to restore confidence, to take measures that will solidly anchor the expectations of households and companies, and to lay the groundwork for a return to sustainable prosperity. this calls for a bold yet solidly grounded response. we must maintain the balance between the need to take immediate action commensurate with the gravity of today ’ s situation, and the equally undeniable obligation to return to a path that is sustainable in the medium term. the ecb for its part will do all that is necessary to continue to be a very solid and reliable anchor of stability and confidence in these challenging times. i thank you for your attention.