The economic recovery in Australia has finally picked up pace. This is what the data released by Westpac-Melbourne Institute's economic index points to.

The growth is a result of the strong commodity prices which have led to an increase in profits and productivity.

The annualized growth rate, which is depicted in the economic index, had been 6.3 per cent during December. This index is an indicator of the growth that is expected to happen six to nine months down the line.

Besides, the figure was also higher than long term trend of 2.7 per cent, which had been anticipated earlier.

Meanwhile, growth rate in the coincident index rose by 3.9 per cent. In December it was 2.5 per cent, indicating the fastest rise since July, 2007.

Experts have also shown confidence in the economic growth and most of them have said that this confidence will continue for the rest of the year.

And looking at the recovery, many believe that the RBA will again stop the lifting of cash rates, which is expected to happen during the board meeting in April.