Treasurer Scott Morrison expects Australia’s economic growth will accelerate as the drag from falling mining investment comes to an end.

He noted, though, that the economy’s performance last quarter might have been hurt by the impact of a cyclone.

In extracts of a speech to be delivered at Bloomberg’s Sydney headquarters on Thursday, Morrison reeled off a string of recent positive economic data -- from employment to retail sales to business confidence -- to justify his optimistic outlook.

“Having been frustrated by a post-GFC funk that has held back global economic growth, the Australian economy is shaking off the restraints,” Morrison said, referring to the 2008-2009 crisis that engulfed the world economy.

While the treasurer had plenty of material at hand to justify his positive take, the economy’s position is more finely balanced. Australians are mired in debt, their wages are stagnant and power prices are soaring, leaving them with limited cash to spend -- a key risk in an economy that’s heavily dependent on consumption.

Morrison acknowledged that household disposable incomes, after adjusting for tax and welfare, have been flat. He argued the key issue is boosting company profits, which have already begun to improve, to allow scope for fatter pay packets.

There has been a “pickup in profits across several sectors, including manufacturing, professional scientific and technical services and real estate in the last six months which we anticipate would benefit workers in time,” the treasurer said. “The strong jobs growth that we have seen will start to eat into spare capacity in the economy and put upward pressure on wages.”

The problem is that the US, UK, Germany and Japan economies are at or near full employment and still failing to see strong wage growth, suggesting that traditional mechanisms may be breaking down.

Morrison hailed the synchronized upswing among major developed nations as a boon to Australia -- particularly as China’s expansion ticked up and the rest of Asia is forecast to grow strongly. This is positive for commodity-reliant Australia as it suggests continued demand for the nation’s resources.

“Our ability to capitalize on these opportunities will fuel growth in service exports and create jobs for years to come,” Morrison said, while noting the high debt-to-gross domestic product levels of China, Australia’s biggest trading partner.