The tide has turned for the global economy with U.S. real GDP posting a
stronger-than-expected increase in the third quarter, the Reserve Bank
of Australia (RBA) citing Australia’s good economic performance as a
reason for raising the policy rate and China recording a breathtaking
8.9% increase in third-quarter output.
So it indeed has been. As this short quote from the Executive Summary
of our 2009 Annual Outlook (published in December 2008) neatly
summarized, the economic recovery faces a number of secular challenges
that will alter the pace and composition of growth.