Although affected by the global downturn, Australia’s economic rebound has made it the envy of the developed world. Recent upward revisions to GDP growth surpassed expectations, and the latest readings indicate a broad-based recovery (in contrast to the US, for example, where a recent jump in growth is down largely to stockbuilding).

The country’s banks are also participating in the upturn, as detailed in the EIU’s latest forecast for Australia’s financial services industry [subscription required]. Lending growth is expected to rebound relatively strongly from a slowdown last year, and although approval of new loans will not match the pre-crisis pace, the flow of credit in Australia should be freer than almost anywhere else in the developed world in the coming years.