Australia’s economic growth is expected to pick up pace this year thanks to a lower exchange rate and stronger activity in the housing and retail sectors, according to the latest forecasts from the Reserve Bank of Australia. 

Investment in the mining and resources sector is forecast to peak some time this year and a pick up in the non-mining sectors of the economy is needed to maintain economic growth.

“Until recently, survey measure of current business conditions have been below average, consistent with subdued non-mining investment,” the RBA said in its quarterly statement on monetary policy.

“A number of indicators, however suggest a gradual increase in growth over time.”

“The depreciation of the exchange rate should provide some additional impetus to activity in the traded sectors of the economy,” the RBA said. 

The bank said that business conditions improved in the latter part of 2013.

“Retail sales and the Bank’s liaison point to a pick up in household consumption growth in the December quarter and measures of consumer sentiment remain a little above average levels,” the RBA said on Friday.