, 2 %. let me now explain our assessment in greater detail, starting with the economic analysis. euro area real gdp increased by 0. 6 %, quarter on quarter, in the second quarter of 2017, after 0. 5 % in the first quarter. survey data point to continued broad - based growth in the period ahead. our monetary policy measures are supporting domestic demand and have facilitated the deleveraging process. private consumption is underpinned by employment gains, which are also benefiting from past labour market reforms, and by increasing household wealth. the recovery in investment continues to benefit from very favourable financing conditions and improvements in corporate profitability. moreover, the broad - based global recovery will support euro area exports. this assessment is broadly reflected in the september 2017 ecb staff macroeconomic projections for the euro area. these projections foresee annual real gdp increasing by 2. 2 % in 2017, by 1. 8 % in 2018 and by 1. 7 % in 2019. compared with the june 2017 eurosystem staff macroeconomic projections, the outlook for real gdp growth has been revised up for 2017, reflecting the recent stronger growth momentum, and is broadly unchanged thereafter. risks surrounding the euro area growth outlook remain broadly balanced. on the one hand, the 1 / 2 bis central bankers'speeches current positive cyclical momentum increases the chances of a stronger than expected economic upswing. on the other hand, downside risks continue to exist, primarily relating to global factors and developments in foreign exchange markets. euro area annual hicp inflation was 1. 5 % in august. looking ahead, on the basis of current futures prices for oil, annual rates of headline inflation are likely to temporarily decline towards the turn of the year, mainly reflecting base effects in energy prices. at the same time, measures of underlying inflation have ticked up moderately in recent months, but have yet to show convincing signs of a sustained upward trend. domestic cost pressures, notably from labour markets, are still subdued. underlying inflation in the euro area is expected to rise gradually over the medium term, supported by our monetary policy measures, the continuing economic expansion, the corresponding gradual absorption of economic slack and rising wages. this assessment is also broadly reflected in the september 2017 ecb staff macroeconomic projections for the euro area, which foresee annual hicp inflation at 1. 5 % in 2017, 1. 2 % in 2018 and 1. 5 % in 2019. compared with the june 2017 eurosystem staff macroeconomic projections, the outlook for

task. but with collaboration, constant 3 / 4 bis central bankers'speeches communication, coordination and cooperation, the challenges we face will be easier to hurdle. we at the bsp thank you — our valued stakeholders for ensuring the continuity of policy reforms to guide the economy and shape our banking and financial system into being among the world ’ s most resilient. let us now offer a toast ^. dear pillars of the financial system, fellow public servants, honored guests, friends from the private sector, media and the academe, we at the bsp re - affirm our commitment to our mandates. to continuity + +. we reiterate our gratitude for your partnership and look forward – jointly and collectively – to navigating the future together. cheers! 4 / 4 bis central bankers'speeches