the spill - over effects of the reversal of the highly accommodative monetary policy by the advanced economies. the domestic economy the domestic economic growth outlook has weakened further following the disappointing first quarter annualised growth rate of 0. 9 %. of some concern is the low growth in real gross fixed capital formation, which moderated from an annualised 4. 3 % in the final quarter of 2012 to 2. 5 % in the first quarter of 2013. the bank has recently revised its growth forecast for 2013 lower, from 2. 4 % to 2. 0 % and for 2014 from 3. 5 % to 3. 3 %. the risk to the growth outlook is assessed to be on the downside, particularly due to the electricity supply constraints, difficult labour market conditions, particularly in the mining sector, and weaker commodity prices. unemployment levels bis central bankers ’ speeches continue to remain sticky and have risen in the first quarter of 2013 to 25. 2 %. of particular concern is the increase in the youth unemployment rate to 52. 9 % in the first quarter. although targeted consumer inflation surprised on the down side in may 2013, decelerating from 5. 9 % in april to 5. 6 %, this easing in price pressures is assessed to be temporary. the bank ’ s latest inflation forecast has been revised upwards, and inflation is expected to average 5. 9 % and 5. 5 % in 2013 and 2014, respectively, with a temporary breach in the target during the third quarter of 2013 when inflation is expected to average 6. 3 %. the upward pressure on inflation is mainly due to the continued currency weakness and higher than expected fuel price increases. the role of the sarb the south african reserve bank mandate as set out in the constitution is to protect the value of the currency in the interest of balanced and sustainable economic growth in south africa. price stability is generally viewed as a critical element of the foundation of an economy and contributes towards achieving economic growth, development and employment creation. the achievement of price stability, in the case of south africa, is quantified by the setting of an inflation target by government that serves as a yardstick against which price stability is measured. the achievement of price stability is furthermore underpinned by the stability of the financial system and financial markets. in pursuit of its mandate and purpose, the bank performs the following functions : • formulating and implementing monetary policy ; • promoting financial stability ; • issuing banknotes and coin ; • regulating and supervising the banking

anselmo teng : brief overview of macao ’ s economy in 2012 speech by mr anselmo teng, chairman of the monetary authority of macao, at the macau association of banks ( abm ) spring festival luncheon gathering, macao, 26 february 2013. * * * the honourable mr. tam pak yuen, secretary for economy and finance, msar, the honourable ms. gao yan, deputy director, liaison office of the central people ’ s government, the honourable mr. ye yixin, chairman of the macao association of banks, honourable friends of the banking sector, honourable guests, in the chinese tradition, the new year carries a special connotation ; fire crackers bid farewell to the past year while the old couplets are replaced to greet new things. we see the year of the dragon off and greet the new year of the snake. on behalf of amcm, i would like to take this opportunity of greeting the new year of the snake, to wish the msar a harmonious community, prosperous business. moreover, thriving business opportunities will fall on the banking sector and our practitioners will elevate to a higher level in their ladder of career advancement. in the past year, although adversely affected by outside environmental factors, the overall economy of macao has scored flying colours again under the cooperation of all sectors of the community. the banking sector has exhibited stable development, another record has been created. it has never been better. according to initial statistics available : as at the end of december 2012, total assets of the banking system stood at mop796. 2 billion, a year - onyear increase of 21 % ; total deposits amounted to mop554. 2 billion, a year - on - year increase of 32. 7 % ; total loans outstanding were valued at mop407 billion, a year - on - year increase of 26. 2 %. although bank assets never cease to grow, the quality of assets has remained fine, non - performing loan ratio was only 0. 19 % while capital adequacy ratio ( car ) stood at 14. 6 %, basically tier one core capital. liquidity ratio was maintained at a rather high level. for 2012 as a whole, total profits of the banking system amounted to mop5. 7 billion, a yearon - year increase of 25 %. the recent trend shows that the international financial situation is displaying clearer signs of recovery. it is however noted