The Rudd government says the latest International Monetary Fund report shows Labor struck the right balance with its first budget.
The study says the government's responsible economic management has helped keep Australia's economy strong during the global financial crisis.
Acting Prime Minister Julia Gillard says the report is encouraging.
“It welcomes the government’s budget surplus, it notes the resilience of the Australian banking system, and it welcomes the government’s ambitious reform agenda through the council of Australian governments.”
Treasurer Wayne Swan said he was heartened by the report, but cautioned that Australia was not immune to the fallout from the current international crisis.
"I think the IMF is also adding weight to the government's view that we're not immune from the global difficulties, but we are in good shape to handle those difficulties," Mr Swan told reporters in Canberra.
"And I think, like the government, the IMF is saying that we do expect a slowing in global growth but we still have a lot to be optimistic about.”
