Australia's central bank upgrades economic growth forecast

SYDNEY, Aug. 10 (Xinhua) -- The Reserve Bank of Australia (RBA) on Friday upgraded its economic growth forecast for Australia in its latest quarterly Statement of Monetary Policy.

The RBA now expects the Australian economy to grow at an average 3.5 percent in 2012, up from its May forecast of 3.0 percent. "While the forecast for growth in the second half of 2012 is similar to that in the May statement, the stronger-than-expected growth in the first half of 2012 has boosted the forecast for GDPgrowth over 2012 to 3.5 percent." the RBA said in the statement released Friday. "The economy is then expected to grow at around 3 percent over 2013 and 2014."

Economists say the central bank seems confident about Australia' s economic growth in the near and medium term, despite an acknowledgment of possible risks from the euro zone.