Australia has probably been one of the economies who held its foot tightly in the tough times of Recession. Glenn Stevens, the governor of Reserve Bank of Australia mentioned that the challenge for Asia and Australia to manage the expansion, which is not going to be less but huge. He believed that the financial crisis is over except for what he calls a ''North Atlantic crisis''.

When grilled by federal MPs, the Reserve Bank governor talked about confidence heading back into a resources boom for Australia.

He mentioned that the economy will take time to develop but there are brighter chances that banks might come to function normally as they were before the crisis period. In terms of trade, by mid 2011, Australia forecasts a 15% rise in terms of trade, which means there will be a 3% hike in the national income. The GDP growth rate is expected to be at 3.5 % in 2010-11 and 2011-12.

As the coal states boom Victoria will be taking the pain and thus making Australia a "2 speed economy". High exchange rate is expected because of the high mineral prices.