On the other hand, performances of both Australia and some of our key trading partners have exceeded expectations in the recent past; that could continue, particularly if rising confidence were to feed further demand, thus increasing income, and so on. That, after all, is the way most recoveries proceed, in cases where there is no strong headwind from financial restructuring.
Moreover, just as the severity and simultaneity of the global downturn was unprecedented, so was the speed and strength of the policy response. Six months ago the possibility of concerted global policy action delivering a surprise on the upside for global growth was noted by some, but it seemed perhaps rather theoretical at that point. It is a bit easier to imagine now.