The Organisation for Economic Cooperation and Development has also welcomed the government's committment to a budget surplus.
But the OECD's latest report paints a gloomy picture for Eurozone with warnings that the debt crisis still has the potential for an economic shock.
I took a close look at the latest report card on this morning's edition of AM.
Read the report here.
The OECD says Australia's fundamentals are strong that that the economy will outpace much of the developed world at 3.1 percent in 2012 and 3.7 percent in 2013.
However, the top growth performers in 2013 are forecast to be Chile (5.1 percent), Turkey (4.6 percent), Korea (4 percent), Mexico (3.8 percent) and Israel (3.6 percent).
Not surprisingly, there is a negative growth outlook for the original PIG economies of Portugal, Italy, Greece and Spain. Ireland (which became a second I in PIIGS) is tipped to grow by 2.1 percent in 2013.