Australian economy heading for a boom

Australia, February 17: Australian economy is heading for a boom, says the latest gauge of economic activity.

 The economy has recovered from the severe global economic crisis to register the fastest rebound that is likely to surpass the growth rate in the mid-1970s. This was stated by the latest index released by the Institute of Applied Economic and Social Research, Melbourne University.

The index suggests that the rate of growth experienced by Australian economy has been 6.2 percent, which is a tremendous improvement from the last year’s growth rate of 5.9 percent.

Another thing to cheer about Australian economy is that as per the suggestions of the latest index, the positive trend emerging in the 
economy is likely to continue in the coming months too.

The remarkable recovery made by the Australian economy is evident from the fact that it started making upward movement even though it had touched an all-time low of -6.9 percent in May 2009, said Matthew Hassan, a senior Westpac economist.

The fact of Australian economy moving towards new highs is further proved by the increased number of jobs in Australia since August 
2009. The Reserve Bank of Australia said nearly 200,000 Australian jobs have been created, giving a further boost to the country.

The unemployment rate of the country has moved to 5.3 percent, an all time low.

With positive signs being seen in several spheres of the Australian economy, the trend of hike in interest rates is likely to continue in the Australian banks. Consumer confidence went up at 5.6 percent in January 2010.

The remarkable recovery rates in the economy of Australia have sent a wave of cheerfulness among the nation’s economists who feel the swing in the index has been ‘extraordinary’ over the last one year.

However, Hassan said the speed in the growth rate will slow when the economic stimulus is withdrawn.