Australia's economy is likely to return to trend growth driven by a pick-up in non-mining investment, Reserve Bank of Australia Deputy Governor Philip Lowe said Thursday.

According to the text of a speech delivered in Melbourne, central banker said some increase in consumption growth is expected, although a return to consumption growth faster than income growth for an extended period is unlikely.

"A pick-up in non-mining investment is an important part of the story in the return of the Australian economy to trend growth," said Lowe.

"Our expectation is that this will take place, with growth in non-mining investment predicted to pick up to at least high single-digit rates within the next couple of years," he added.

Deputy governor noted that a further depreciation of the Australian dollar would help rebalancing the growth in the economy.

When investment in Australia was very high and rising, and investment elsewhere in the world was very weak and falling, the Australian dollar was at quite a high level.

Lowe says some realignment of the value of the Australian dollar would occur when mining investment boom in Australia unwinds and investment in the developed economies picks up.

RTTNews