Access Economics has reported on Wednesday that the Australian retail industry is set to experience growths in the current financial year as it warned though that further expansions may be dwarfed by the establishment of a minority government.

Access director David Rumbens revealed that the country's retail sectors would achieve growth of up to 3.2 percent in 2010/11, with those numbers set to improve further into 3.7 percent as the current year wears on and 2011 sets in.

The economic forecaster said that Australia would see a much stronger retail environment over the next few years as Mr Rumbens attributed the future gains to recovering employment rates and consumer confidence.

He added that with the "350,000 jobs created over the past year, consumer confidence is rebounding, stability in interest rates over the past few months I think has helped as well."

On the other hand, Access Economics said that more potential growth for the retail industry could be arrested by the minority government's proposal of reducing the country's exploding population.

Mr Rumbens said that its dynamic population is one of the moving factors of Australia's remarkable prosperity seen in the past decade, adding that growth was also attained "in large part due to asset price booms, house prices, going up a lot and the share market as well, we're less likely to see those sorts of things going forward."

Access Economics noted that its present forecast paled in comparison to the retail industry boom that Australia saw right before the onset of the global financial crisis, when growth rates climbed by as much as eight percent during the industry's heights.

In consideration of the country's present pace of population growth, weaker housing sector and sluggish market growth, Access Economics said that it is quite unlikely that a similar boom would revisit the retail industry as the three factors would place great amount of pressure on retail sectors and impede their ability to achieve better sales figures.