The Reserve Bank of Australia now expects the economic growth in 2011 is [br] [

Australia’s central bank has cut its forecast for growth due to a " slower-than-expected recovery from floods earlier this year. (28) The Reserve Bank of Australia said it expected growth to be 3. 25% in 2011, down from its earlier projection of 4. 25% . The central bank added that subdued levels of consumer spending were also hurting growth. (29) Australia’s economy shrank by 1. 2% in the first three months of the year.
    Australia’s growth in recent years has been powered by a boom in its resources sector. Increased demand for its commodities and minerals from emerging economies has seen the sector grow rapidly. (30) However, while the resources sectors has been expanding, domestic demand has been slowing down, giving rise to what analysts have called a two-speed economy. (30) Data released earlier this week showed that retail sales in Australia fell 0.1% in June, compared with the previous month, the second successive monthly drop.