The year that has just ended was an unusual one in economic terms.

After the start of the financial crisis in late 2008, 2009 was a year in which the world continued to suffer the consequences. As expected, the difficulties that started in the last quarter of 2008 continued during the whole of 2009, although we have been told that things have started to look better in the latter stages.

Most economies were in the negative. Across the world, thousands of jobs were lost as companies sought cheaper destinations to set up shop or cut down on the workforce to reduce their expenses. People’s spending power decreased or, at best, money was saved rather than spent.

The tourism industry suffered unprecedented blows as people gave up their holidays or went for shorter, less expensive ones, many times seeking locations closer to home, sometimes not leaving their own country. Quarter after quarter, economies failed to grow as productivity decreased hand in hand with consumption.

In a globalised world, it was inevitable that Malta was negatively affected too. Yet, in the circumstances, the impact was less sharp than that experienced elsewhere. It could be that our small size was, for once, an advantage to us. Although we, too, had negative growth, the number of jobs lost was somewhat contained when compared to what happened in other countries, as the government looked for and implemented measures to keep as many families afloat as possible.

Christmas, usually an indicator of the feel-good factor or otherwise of this nation, came and went. It was no surprise that many businessmen complained of lower sales or a poor season – most of them grumble even when the going is good, so it is to be expected that they express concern when things are not so good.

They said that the last day of shopping before Christmas saved the day, but so far nothing has been said of what was spent after Christmas. These days, people prefer to give cash gifts rather than risk displeasing the gift-receiver, and many were the shops that were full on Boxing Day and the days after – on some occasions, shops ran out of stock on items that were in great demand. Many restaurants were full in the week between Christmas and the New Year too.

So things were not that bad. True, these are exceptional times, but it must be said that most Maltese continued to live very much like they used to, in spite of the recession and financial constraints. Naturally, they will feel the blow of the increase in the cost of water and electricity as from this month.

This takes us to the year that has just started, which many are predicting would be a year of recovery, or at least a year when the downturn is neutralised and a slow, gradual upturn starts. We all hope so.

However, caution must be expressed because the situation is still volatile and can change at a moment’s notice. What happened in Dubai a few weeks ago could happen elsewhere, and at a time when the world economy is struggling, such shocks are even more shattering.

Yet, there is reason to believe that the worst is over, and that the world has started to pick itself up from the worst crisis in decades. Once the bigger economic wheels start turning, the smaller ones will also start to move and sooner or later the situation will go back to what it was in summer 2008.

Let us hope that the world has learnt the lesson, and that the mistakes that were committed are not repeated.