It is also due to the decrease in unit labor cost, which is often observed in the early stage of economic recovery. In the early stage of recovery, productivity rises as idle resources are brought back into use, unit labor cost declines, and then downward pressure on prices is seen.
Other indicators likewise exhibited stronger economic positions such as the country’s balance of payments, which posted a record surplus of USD 8.6 billion in 2007 and our all-time high level of international reserves.