Economic conditions in Australia were "better than expected in 2009", according to the country’s central bank.

The Reserve Bank of Australia (RBA) said that, in comparison with the global economy, the country’s financial system grew "reasonably well".
In particular the RBA noted that labour conditions "have been positive".

"Given these developments and a pick-up in hiring intentions by firms, it now looks likely that the unemployment rate has peaked at around 5.75 per cent, a much better outcome than thought likely early last year," the bank explained.

During 2009 inflation "moderated" which the bank believes was down to a decline in private sector wage growth, exchange rate improvements and a decrease in domestic demand pressures.

It was noted by the International Monetary Fund (IMF) this week that global economies were returning to growth at different rates, with Asia leading the way.

Dominique Strauss-Kahn, managing director of the IMF, said that countries in the region were "now close to total recovery".

Posted by Tom Britten.