Exporters stopped delaying the transfer of their proceeds, importers shifted back to foreign financing for purchases and international investors were again willing to invest large sums in domestic shares and bonds. International conditions calmed down somewhat and the world economy began to recover.
Over recent times, employment growth has been stronger than was expected. Over the past year, the number of people with a job increased by 2½ per cent (Graph 13). Reconciling this with GDP growth of just 1½ per cent remains a challenge, because, normally, output growth exceeds employment growth, rather than falls short. We are seeking to understand what is going on here.