One starts to wonder whether it is time to be optimistic, or pessimistic, or realistic. There have been very positive signs that the world's leading economies are coming out of the international recession.

Then something happens and despondency takes over again. Over these last months there have been a number of such occurrences. Stock markets seem to take off and then fall back, making long term investors wary of putting in more money. The price of oil would at times appear to be under control, and then would suddenly edge upwards. Currencies remain very volatile.

Some segments of the economy seem to have weathered the international recession while others have got knocked really badly. Within the segments that have weathered the international recession well, some players have thrived, while others have floundered. Some businesses report that this is still a time for consolidation, while others believe that one needs to start looking at expansion.

It is not yet certain if and when the huge sums of money that have been spent by various governments to bail out banks and other companies will eventually lead to inflation. GDP in a number of economies is turning, but it would seem that consumption is remaining rather flat.

There is also the fear that interest rates may start rising in the coming months, ending a very lengthy period of cheap credit, even for those businesses that have shown themselves to be creditworthy. The news from Greece, Spain and Portugal tends to lead to further worries as it makes people ask whether this will impact the whole of the European economy.

After the bailout of businesses and financial institutions, do we have to witness the bailout of a country? The issue with the problems that Greece has been experiencing is that it makes consumers and businesses in other countries fear that the same could happen to them.

All this is leading one to suspect that the sentiment may remain bearish for some more time, which is bound to dampen growth prospects.

Sustained economic growth can only happen if there is growth in investment, jobs, consumption and even saving. Within such a scenario, it becomes very difficult to decide what approach to take. Should one look at the future with optimism? Should one look at the future with pessimism? Obviously one has to take a realistic stance - but what does being realistic really mean in these circumstances?

So far I have been referring to the situation beyond our shores. However there are lessons to be learnt by us as well from the evolving international situation. Somehow, our experience with the recession has not been as negative as that in other countries. Employment has by and large been safeguarded. Investment in certain areas has shown moved on. Irrespective of individual situations, consumption has remained at a sustained level. On the other hand there have been signs of the recession here in this country as businesses have sought to consolidate their operations and cut costs.

Even in Malta we need to be realistic. We cannot take a pessimistic outlook as we run the risk of causing further damage to ourselves. Pessimistic talk brings about further uncertainty. I believe that being realistic in our case means adopting a hands on - can do attitude. We can always allow other things to steal our focus from what is essential to the economy.

However, the balanced realistic approach should continue to be doing whatever possible to safeguard jobs and investment.