Australia was recently declared a world economic leader, according to a latest assessment by the International Monetary Fund.

According to the World Economic Outlook released yesterday, the IMF stated that Australia's economic growth increased to 3.0 per cent in 2010, surpassing the recent forecast of 2.5 per cent last January. By 2011, it is predicted to rise to 3.5 per cent, following a 2009 growth of 1.3 per cent.

Treasurer Wayne Swan was pleased with the recent report by the IMF as it helped put Australia in the world map in a positive light.

"The IMF's report is another testament to the success of economic stimulus together with the resilience of the Australian people during the toughest economic conditions since the Great Depression," Mr. Swan said in a statement.

IMF said that Australia's progression was supported by its strong demand for commodities, especially from China.

"By contrast, Australia and the newly industrialized Asian economies are off to a strong start and will likely stay in the lead," IMF said.

The IMF predicts that world growth will reach up to 4.25 per cent from 2010 to 2011 while advanced economic markets, such as the United States, European countries and Japan, will grow up to 2.3 per cent or 2.4 per cent.

According to IMF, the stimulus plans supplied by governments provided enough strength during the economic downturn.

Mr. Swan believed that Australia already exhausted its stimulus plans and is currently on the process of withdrawing as the economy recovers in their favor.

"Fiscal stimulus in Australia is being withdrawn faster than in most other advanced economies, and ahead of the timetable set by the IMF for other developed economies," Mr Swan said.

Mr. Swan added that it will cooperate with other G20 members to work on rebalancing the global demand, work on financial regulation and reform of international financial institutions to attain sustainable growth and avoid another economic downturn.

Group of Twenty Finance Ministers and Central Bank Governors or G20, is a group of finance ministers and central bank governors from 19 countries, including the European Union.