NEW YORK (
) -- Australia was the only major economy to avoid a technical recession in 2009 and was the first G-20 nation to tighten interest rates since the beginning of the financial crisis. That's why the nation down under is expected to shine in the coming year.
A massive government stimulus plan, which included billions of dollars in cash handouts to low- and middle-income earners boosted private consumption and business investment, which has further bolstered increases in consumer confidence, housing construction and public infrastructure spending. These three efforts are expected to keep Australia's economy in growth mode.
In fact, the nation's economy is expected to grow 3.75% in 2010, which will enable it to improve its unemployment numbers, which are the lowest amongst industrialized countries, and further boost consumption, which will add to the health of its economy.
Another reason Australia has appeal is the health of its banking sector. Australian banks emerged from the global financial crisis without taking much of a blow, leaving them relatively solvent and immune from high rates of bad debt in the near future.
Additionally, according to a research report at Wharton Business School, the Australian government has further strengthened its financial sector by guaranteeing deposits and wholesale funding of its financial institutions.
Lastly, Australia has reaped the benefits, and will likely continue to, from being commodity rich and having a good relationship with Asian trading partners. China is expected to grow exponentially in the coming year and will likely turn to Australia for resources as will South Korea and other Asian nations.