Consistent and substantial growth rate of the Westpac-Melbourne Institute's index, considered as an important measure of the economic activity of the country, has indicated that the Australian economy is bound to record a sharp growth in the coming year, giving further signs that the country is out of recession. For September, the index recorded a growth a 5.8%, which is well above its long-staying trend of a 3.1% growth record.
The index is considered to be a good indicator of the economic activity for the coming 3-9 months by experts, and the same has now surged from minus 5.4% recorded in May, marking the fastest economic turnaround since the country's recovery from the 1970s recession.
"This read represents an extraordinary pace of recovery", said Westpac chief economist Bill Evans. “The sharp recovery in the leading index's growth rate supports our view that the Australian economy is moving into a stronger growth trajectory in 2010".
For the coming year, the Westpac index seems to be indicating an economic growth of 1.75% in 2009 to 4% in 2010, as much delightful news for a country which was among the hardest hit by the recent global financial downfall.
The index figures, which show a much-better-than-expected recovery, were shared on Wednesday.