will turn into lasting geopolitical fragmentation, posing serious threats to global trade, capital flows, technology transfer and climate policy cooperation. it is still early to declare victory in our fight against the pandemic, a once - in - acentury health crisis that paralyzed the world with untold loss of lives and livelihoods. it is important that we do not lose sight of resurgence risks of new and more virulent covid - 19 variants in the context of a still - low vaccination coverage in the low - income countries ( lics ), particularly in sub - saharan africa, and vaccine hesitancy in parts of the aes. the cooperation that brought us together in the global fight against the pandemic should continue with full force towards equitable and affordable global accessibility of vaccines, tests, and treatments. the two recent crises have brought to fore the issue of food insecurity that had been brewing under the surface. chronic hunger, child and mother malnutrition, and pervasive poverty, always features of poorest members, have been exacerbated by the surge in global food prices that has pushed many more millions into poverty, even in some middle - income countries. the international community has to rise to the challenge. in this connection, we welcome the imf ’ s new food shock window as a part of its emergency support facilities that should be accessible to all eligible members in an evenhanded manner and with the same sense of urgency. the sad plight of the afghan people should not be forgotten. afghanistan is facing the highest incident of insufficient food consumption in the world, with 90 percent of households, and an even higher percent of households headed by women, are facing insufficient food consumption. close to 4 million afghan children are acutely malnourished. it is difficult to imagine how long and how far this situation could continue. going forward, we all bear responsibility of putting the world economy back on a sustainable and steady track. the expectation is for the aes to maintain the delicate balance in the inflation - growth trade off, recognizing the significant negative spillovers of policy mistakes, in either direction, as they try to lower inflation and keep inflation expectations anchored. while we will all benefit from lower inflation, we cannot afford an overtightening of monetary conditions when the world is at the cusp of a serious recession. we also see no justification for maintaining restrictions on food exports by some food - rich countries, on medicine by some producing countries,

response to new financing needs related to private and public enterprises investment programs. as a percentage of nonhydrocarbon gdp, the financing of public and private enterprises through bond issuance reached 3. 5 % in 2006, up from 1. 5 % in 2004. 2. macroeconomic stability and recent strengthening of the financial stability framework the return to macroeconomic stability in 2000 and the financial performance achieved between 2001 and 2008, allowed the domestic economy to weather the global crisis well. in particular, sustained accumulation of foreign reserves between 2000 and 2008 and early repayment of the external public debt in the mid - 2000s put algeria in a position of net creditor vis - a - vis the rest of the world. its net external position reached 91 % of gdp in 2013, in a context of continued prudent management of foreign reserves by the bank of algeria. this external financial stability is supported by bank of algeria ’ s active exchange rate management through its interventions in the interbank foreign exchange market aiming at stabilizing the real effective exchange rate of the dinar close to its medium term equilibrium level. in the first half of 2014, real effective exchange rate slightly appreciated, in a context of disinflation. the inflation performance over the last twelve years, except for the year 2012, is an anchor to monetary stability in algeria, despite structural excess liquidity in the money market. after a surge in 2012, the disinflation process started in february 2013 and continued through 2014, with inflation declining to an annual average of 1. 49 % in july. the contribution of monetary policy to preserving financial stability in algeria remains crucial, given the predominance of the banking sector in the algerian financial system and banks ’ potentially important role in the development of financial intermediation. at the same time, the financial capacity built during the period 2000 – 2008 enabled the budget to mitigate the impact of the 2009 external shock, while avoiding any crowding out effect. this financing capacity remains significant and accounts for 34 % of gdp at the end of 2013, in a situation of very low domestic public debt ( 8 % of gdp in 2013 ) and implementation of fiscal consolidation. in contrast with the case of several emerging and developing countries, credit expansion in algeria continued at the pre - global financial crisis pace, and even at a higher rate since 2010, in particular as regards credit to the private sector. the strong growth of credit to the economy in 2013 ( 20. 3 % against 15. 1 % in 2012