this but 40 % of our budget goes to social services. our growth story has been supported by structural and policy reforms in the economy for around three decades. these reforms enable growth by expanding the role of market forces in key sectors of the economy ; encouraging investments and private sector activity ; removing bottlenecks to doing business and investments in the country ; and strengthening the country ’ s fiscal position and the financial sector. these, and other structural reforms in the pipeline, will continue to play a significant role in propelling the economy toward a balanced, sustainable, and inclusive growth. in addition, recently approved legislation — such as the bsp charter amendments, philippine identification system ( philsys ) act, national payment systems act and the gold law — allow us to pursue our mandate with more vigor and in effect, enable us to espouse the interests and uplift the lives of all filipinos. so what is the role of bsp in the philippines ’ growth narrative? our mandate is clear : “ maintain price stability conducive to a balanced and sustainable growth of the economy and employment. ” our objective in the bsp is to protect the real purchasing power of the peso to support conditions for long - term economic growth. with your presence in this annual corporate planning and budgeting process summit, i know you are fully aware of the importance of efficient allocation of resources. as a central banker, i would argue that price stability is closely linked with financial efficiency. if the prices are low and stable, financial planners are better equipped to allocate resources to their most efficient use. lesser price volatilities would also enable us to anticipate risks and plan better. and with our amended bsp charter, we are now in a better position to implement sound policies to promote and maintain price stability, a strong financial system, and a safe and efficient 2 / 6 bis central bankers'speeches payments and settlements system. in terms of price developments, we are on track to achieving our inflation target of 2 to 4 percent for 2019. to give you some context, our june inflation declined to 2. 7 percent from 3. 2 percent in may, the lowest inflation recorded in more than 20 months since august 2017. later this morning, the philippine statistics authority ( psa ) will announce the average percentage of inflation for july. my forecast is that it will settle within the range of 2. 2 – 2. 8 percent. this sits comfortably within the government ’ s target band, in line

toshihiko fukui : an overview of japan's economy and financial system summary of a speech by mr toshihiko fukui, governor of the bank of japan, at a meeting with business leaders in sendai, 1 october 2003. the speech was delivered by kazumasa iwata, deputy governor of the bank of japan, on behalf of the governor. * i. * * current state of the japanese economy and developments in financial markets let me begin by discussing the world economy. the u. s. economy has spurred a moderate recovery supported by personal consumption. recovery is beginning to spread to orders received by manufacturers and capital spending with the rise in world demand for it - related products. the large - scale tax cuts are beginning to have a positive impact on personal consumption. growth seems increasingly likely to start accelerating, while pressure on labor adjustment remains. economic activity in east asia is also heading for recovery. in china, the adverse effects arising from severe acute respiratory syndrome ( sars ) have virtually ended, and exports of the nies and asean are expected to increase with the worldwide recovery in it - related demand. in europe, there are signs of improvement in corporate sentiment, although the impetus for recovery is not yet evident. the above assessment of the global economy was endorsed at the g - 7 meeting last month in dubai. turning to the domestic arena, capital spending is recovering gradually as corporate profits increase. largely thanks to this recovery, real gdp posted an annualized growth rate of 3. 9 percent in the apriljune quarter, far exceeding market expectations. the tankan survey released on october 1 shows that the capital spending plans of large manufacturers for fiscal 2003 are expected to increase 11 percent on a year - on - year basis, and that of all enterprises is slightly larger than the figure in the previous year. thus, the recovery of capital spending is expected to become more certain. personal consumption has been weak recently due partly to the cold summer. however, signs of favorable change are emerging on the employment and income front. although overall economic activity remains virtually flat, signs of recovery are gradually being observed. the likelihood seems to be increasing that, with the recovery of exports and capital spending leading to an increase in production and corporate profits, the japanese economy will return to a self - sustained, though moderate, recovery path. according to the tankan survey released on october 1, corporate sentiment is generally improving, as is shown by the fact that the judgment of business conditions by