This is obviously partly because the downturn in the economy itself has been milder. But it also makes for better prospects for growth in the short term, because it greatly lessens the likelihood of abrupt adjustments in investment, or employment. Longer term, prospects for profits rely heavily on productivity performance, an issue in which the business and policymaking community both have a vital interest.
Productivity is key both for businesses in sustaining profitable performance and for the community as a whole since it is productivity growth which is ultimately the source of higher living standards.