Reuters An office worker is reflected in the window of the Australian Securities Exchange building displaying the ASX50 curve for Wednesday in central Sydney August 7, 2013.
Based on Citi's projections, Australia's gross domestic product growth rate would be 2.5 per cent in 2013 which would improve to 3 per cent in 2014. The 3 per cent expansion would be sustained in 2015 and 2016 but will further improve to 3.2 per cent in 2017.
Paul Brennan and Joshua Williamson, Citi analysts, observed that Australian households have held on most of the post-election bounce in consumer sentiment, and business confidence has been boosted.
"Historically low interest rates and gains in wealth from higher house prices should begin to translate into a pick-up in domestic demand growth," Business Insider quoted the Citi analysts.
Citi's forecast is more optimistic than the International Monetary Fund (IMF) which cut its outlook of Australia's GDP growth rate for 2014to 2.8 per cent from its April estimate of 3.3 per cent.
Here is CNN's report on Australia's Q2 results just before the September election.
The IMF likewise upped its forecast of 2014 unemployment rate to 6 per cent from 5.2 per cent in April. But the IMF forecast is more optimistic than the Treasury under the then Labor-led government with a prediction of 6.25 per cent unemployment by mid-2014.