MacroBusiness Access Subscriber Only Content Via Westpac: The growth rate of the Index continues to point to above trend growth in the Australian economy through 2021. In its February Statement on Monetary Policy the Reserve Bank forecast growth of 3.5% for 2021, almost in line with the Westpac forecast of 4%. With population growth forecast to slow to 0.2% in 2021 compared to 1.5% in 2019, both forecasts represent significant above trend growth. Westpac expects this growth to be led by the consumer with consumer spending contributing around 3ppts to the overall 4% growth rate. With the unemployment rate falling and Consumer Sentiment currently near a 10 year high the consumer is expected to compensate for the likely impact on incomes from the winding down in a number of the federal government income support programs by using its significant savings buffer (estimated by the Reserve Bank at $200 billion or 15% of annual income) to subsidise spending.