Deloitte Access Economics warned on Monday that Australia's mining boom is expected to last for just two more years. Deloitte pointed out that the current resources boom is the result of investments made by mining firms a few years back and there are few new mining mega projects on the pipeline.

However, Deloitte Director Chris Richardson said that mining continues to be the economic driver of Australia out of the 22 sectors that Deloitte studied for its Business Outlook for the June 2012 quarter report.

"There's still enough gas in the tank of huge resource projects to provide handy pipeline protection if Europe were to turn pear-shaped," Mr Richardson was quoted by Ninemsn.

Deloitte pointed out that Australia's economic grew the past 21 years without a recession even if Australian businesses have a half-glass full out outlook.

"Things are better than people realise. We judge ourselves against our own experience and Australia has done well for so long that, you know, we want to keep doing better and that's a tough yardstick," ABC quoted Mr Richardson.

The firm said the country's economy grew by 3.2 per cent in the past 12 months to June 2012 while it foresees sustaining the economic expansion in the next five years with a forecast of a growth rate between 3 and 3.4 per cent.

Mr Richardson also forecast one more rate cut by the Reserve Bank of Australia is its outlook for Europe and China holds.

He also warned of prospects for a federal government budget surplus to be shaky due to the slowdown in China's economy and the relatively weak Australian share market which would cause a drop in government revenue. For Treasurer Wayne Swan to deliver on his budget surplus promise, Mr Richardson said that Canberra has to make more cuts to government spending or postpone some government programmes.

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