Despite the continued global uncertainty, the impact of the high dollar, coupled with challenging conditions faced by some sectors on the home front, the Australian economy will nevertheless grow solidly by 3.0 per cent in 2013 and 3.3 per cent in 2014, according to the International Monetary Fund (IMF).
The latest figures, which were actually run parallel to forecasts made by the Reserve Bank of Australia and federal Treasury Department, comes after an expansion of 3.6 per cent in 2012.
Australia's continuing economic positive momentum will be assisted and propelled by the renewed expansion in the Asia region, led by China, India and Indonesia. Of the three nations, the IMF expects China to post an annual growth rate of 8 per cent this year, from last year's 7.8 per cent, which definitely is good news for Australia. China is Australia's topmost leading trading partner.
India, meantime, is expected to grow 5.7 per cent in 2013 from 4 per cent last year, and then 6.2 per cent in 2014, based on IMF's April 2013 World Economic Outlook forecasts.
By and large, it will be the emerging markets and developing economies that will continue to post growth despite the sober global outlook.
"Most of the world's growth for the past few years has been occurring in places outside the developed, advanced economies," Tom Taylor, the head of international economics at NAB, told SmartCompany.
"The IMF report envisages a gradual pickup in global economic growth, coming from an acceleration in the big advanced economies, like the United States and Japan, and an ending of the recession in the eurozone."
Japan, Australia's second leading trading partner, has been projected to grow 1.6 per cent in 2013, revised from just 0.4 per cent as per the January's IMF outlook report.
Overall, Asia is expected to hit 5.75 per cent this year and six per cent in 2014.
"Asian economies will also benefit from internal demand spillover, particularly growing Chinese demand and the policy-led pick-up in Japan," the IMF said.
"For several economies, direct and indirect demand from China and Japan are almost as important as demand from the United States and Europe.