On balance, wage gains appear moderate, and the pace seems broadly consistent with a tightening labor market once we account for the disappointing productivity growth in recent years. I expect the labor market to strengthen further as economic growth continues.
This dismay arose from two factors. First, there was surprise that we were hit by a crisis with origins in the banking system even as our banks, and indeed our entire financial system, had minimal exposure to tainted assets. Second, there was also concern that we were hit by global recession even though our export sector, at 15% of GDP, was relatively small. 9.