their earlier prudent levels of net indebtedness. these considerations further underscore the importance of quickly completing the process of banking sector rehabilitation and of attracting new sources of capital. such decisive action would allow the banking sector to again be an engine of growth, capable of offsetting the eventual withdrawal of fiscal stimulus. conclusion in closing, the recovery in asia has been impressive indeed, and owes much to the energy and hard work of its people, enlightened political leadership, and the substantial and focused efforts of policymakers to implement sound macroeconomic and financial policy. but the recovery is not yet complete and much remains to be done. while the crisis did substantial damage, it has not fundamentally affected asia ’ s prodigious economic strengths. but if asia is to realize its potential, it is critical that authorities attend to the unfinished business that remains while continuing to put in place longer - term measures to promote financial resilience, ensure the sustainability of public sector debt burdens, and encourage sustainable growth. asia is at an important crossroads and there is now a unique opportunity to consolidate recent reforms and implement lasting change that will pay dividends for years to come. thank you for your kind invitation and attention. i would be happy to take any questions you may have.

in the united states before the war. however, it has become considerably more so as a result of the reduction in the supply of russian gas, which already began in 2021. gas is likewise expected to be more expensive in europe than in the united states in the medium term. this applies to end customers, too, and the same is true for electricity. for the time being, the impact on profitability can only be estimated in a cursory manner or using simulations. by contrast, the impact on price competitiveness can already be quantified ( see chart 8 ). in 2022, the relative rise in energy prices, up to its peak in september, had a marked impact on germany ’ s price competitiveness, reducing it by around 0. 9 %. [ 10 ] sectors with an above - average share of energy costs in production, such as the chemical and paper industries, were, of course, affected to a greater extent – and still are. however, in the same period, exchange rate developments benefitted german businesses, with the euro depreciating by 12. 5 % against the us ( united states ) dollar. this, in turn, improved germany ’ s price competitiveness by 1. 9 %. this temporary depreciation of the euro against the us ( united states ) dollar is likely to be due to the strong policy rate hikes by the federal reserve, which started earlier than in the euro area. the euro has since regained most of the lost ground. on average, the price competitiveness of the german corporate sector appears robust overall. however, energy - intensive industries have been disproportionately affected by the rise in energy prices, becoming less competitive. thanks to good earnings and financing conditions, enterprises should generally be in a good position to absorb the rise in energy prices. [ 11 ] however, all other things being equal, there is likely to be an incentive for energy - intensive industrial plants to tend to invest in countries where energy costs are comparatively low and will remain so in future. of course, simply looking at current energy costs doesn ’ t go far enough here. as decarbonisation is a global necessity, it is imperative to look at the costs of future energy. this means risks and opportunities for germany as an investment location. ladies and gentlemen, let us now turn to the third challenge facing the german economy, namely demographic developments. one concern is that demographic change limits our ability to create prosperity – as does the at least