There are positive signs for the Economy this week as Australia raises its main interest rate to 3.25% from 3%, becoming the first G20 nation to do so as the global economy begins to recover.

Supprising as this may seem, it is not unexpected. This move by the central bank of Australia had been expected for some time now, mostly due to the fact that Australia was the only country in the developed world to expand in the first half of 2009. This coupled with the fact that Australia only saw its economy contract for one quater of 2008 makes is seem that Australia rode through the storm quite well.

This was mostly thanks to the quick and decisive actions of the Australian Government, who helped the economy with major stimulus spending. This spending totaled around 42bn Australian dollars ($35bn; £21bn), which was spent on schemes such as cash handouts for pensioners and for low and middle-income families, and a number of infrastructure projects.

These actions kept consumer spending high enough for the Australian economy to survive and as of this year, enable Australia's economy to grow 0.4% in the first quarter and by 0.6% in the second, rebounding from the 0.5% contraction in the last months of 2008.

However, do not think that Australia is fully out of the woods yet. Even though the interest rates are now at 3.25%, these are still extremely low. The move to a 4% interest rate will be a gradual one so as to avoid a contraction again. Yet, market strategist Rory Robertson is optermistic that if the Australian economy continued to expand as expected, rates could return to "a more normal 5%" in the next year or two.

As well as its Government's actions, Australia owes its economic rescilience to the strength of its mining sector. This sector has been kept alive by high demand of its iron ore from China, as well as other mining comodities.

Whatever the reasons, it is clear that the economy is improving and showing definite signs of growth, hopefully 2010 will tell.