The economy is set to continue to stand out on a global basis as economic growth increases to 3.25% in 2010 before accelerating to 3.5% in 2011, according to the Organisation for Economic Cooperation and Development.
The new outlook supports a further gradual tightening in interest rates. Managing the exit strategy from the crisis is less problematic in Australia than most countries, with recent tightening of monetary and fiscal policy a welcome development.
Helping drive Australia's robust economic growth, the OECD cited both "booming exports" and "domestic demand." The outlook also forecast the unemployment rate would fall below 5%. In 2010, the OECD expects the headline rate of inflation to be 3.0%, before slowing to 2.7% in 2011.