the last five consecutive quarters. machinery - equipment investments have 1 / 5 bis - central bankers'speeches also made an uninterrupted positive contribution to growth in the post - pandemic period. on the production side, the services and industrial sectors continued to contribute to growth. we see that machinery - equipment investments continue in a sound and sustainable framework. investments that support productive capacity, particularly machineryequipment investments that drive industrial output, point to a stable and strong growth. in this context, it is important that the investment need required for the continuation of the supply - side contribution to sustainable growth and price stability is met with accessible, long - term and low - cost turkish lira financing. machinery - equipment investments and net exports are the pillars supporting the economic performance of turkiye centered on increasing investments, employment, production and exports, and their share in national income has been rising consistently. their total share in national income reached the highest historical level at 18 % as of the first quarter of 2022. the stable increase of machinery - equipment investments will enhance the supply capacity of our economy, thereby contributing to permanent price stability. the latest data indicate that industrial production remained on a favorable track in the second quarter of the year with the help of sustainable components. industrial production has grown on an annual basis without interruption since the third quarter of 2020 and recorded an upsurge of 9. 1 % in may 2022. while this increase in production spreads across the manufacturing industry, industrial production in exporting sectors remains even stronger. industrial turnover indices also indicate that external demand has a positive impact on industrial production. strong economic growth is also apparent in capacity utilization rates. while capacity utilization rates increased in all sectors, in some sub - sectors they even exceeded historical averages. this points to a need for additional capacity, and supports the investment demand. on the other hand, hovering above past averages, the manufacturing industry capacity utilization rates indicate that the strong trend in investments will continue by encouraging companies to opt for capacity expansion. in this context, capacity increases are more pronounced in sectors that are composed of companies with high investment appetite. survey data also show that as of july, investment expenditures of companies will rise further in the coming periods. this trend grew stronger with a spillover into all sectors, chiefly to those sectors producing investment goods as well as exporting ones. given the january - may average, increases in the import quantity of investment goods accompanied by the rise in industrial production, with capital goods in the lead

##ion from under - capitalised banks. we support the current efforts of our european partners to resolve these issues through aggressive bank stress tests and, in conjunction with the international monetary fund ( imf ), credible programs to support durable recoveries in the affected economies. in japan, the cost of the physical damage of the earthquake, tsunami and subsequent nuclear crisis could reach as high as 6 per cent of gdp. the resulting supply chain disruptions will hit growth in japan and other advanced economies, including canada, this mckinsey & company, “ the great rebalancing, ” mckinsey quarterly, june 2010. see c. m. reinhart and v. r. reinhart, “ after the fall, ” macroeconomic challenges : the decade ahead, federal reserve bank of kansas city 2010 economic policy symposium. available at : http : / / www. kansascityfed. org / publicat / sympos / 2010 / reinhart - paper. pdf bis central bankers ’ speeches quarter. over the longer term, japanese growth will be weighed down by significant fiscal and demographic pressures. the balance of these two major forces – weakness in advanced economies and strength in emerging economies – determines the global economic outlook. last fall, the consensus was that a faltering recovery in advanced economies was a greater risk than overheating in emerging markets. today, it is the opposite. such reversals can be expected to continue. although this shift to a multi - polar world is fundamentally positive, it is also disruptive. labour, capital and commodity markets are changing rapidly. the effective global labour supply quadrupled between 1980 and 2005 and may double again by 2050. 4 cross - border capital flows have exploded, growing at almost seven times their rate when this club was founded. commodity markets are in the midst of a super cycle. once again, it is a time of great opportunity for canada, but navigating the cross - currents in the global economy will require boldness and skill. allow me to expand on three consequences for canada. changing patterns of trade patterns of trade are evolving rapidly. in particular, the expanding urban middle class in emerging economies is having a major impact on a wide range of commodities. whether it is travel, housing or protein, consumption levels in major emerging markets are currently fractions of those in advanced economies. 5 with convergence still a long way off, the demand for commodities can be expected to remain robust for some time. based on the experiences of japan in the