Since we last met in Perth, economic conditions in Australia have strengthened. At the same time, financial markets globally have recently become extremely skittish and there has been a very sharp re-assessment of risk and a sudden desire for liquidity. I will come to the financial market turbulence shortly.
Before I do, however, it is worth recounting how the real economy has performed over the past six months. Given the uncertainty being felt in financial markets at present, it is important to keep a clear sense of the economic fundamentals. According to the national income accounts, growth picked up sharply in the December and March quarters.