Despite the surveys suggesting that Aussie voters were not inclined to give the Labor-led government a fresh mandate in 2013 Prime Minister Julia Gillard has reasons to smile these days following the approval attached to her economic policy by the Paris-based Organisation for Economic Cooperation and Development (OECD).

In a new report the OECD issued Tuesday night, the Australian economy was singled as among the strongest in the developed world, with the country getting high scores in every areas scrutinised by the body's Better Life Index.

Head-to-head, Australia tops other industrialised nations, including Norway, which is presently regarded as one of the most stable economies in the world.

Expectedly, the Australian economy was deemed by OECD in a better position to withstand the foreseen economic challenges that analysts fear could envelope key economies in the remaining months of 2012 in the event that the financial crisis battering Europe takes a turn for the worse.

In direct contrast to the high dissatisfaction rating that Ms Gillard and the Labor Party have been getting from Australians, the government's handling of the domestic economy convinced many to stamp a high satisfaction score of 7.4, with 10 being the highest mark, the OECD report showed.

The same survey also noted that 74 percent of Australians look to the country's in-placed political system in high-regard, effectively erasing the negative impressions of the federal government as spawned by the strings of scandals that had bedevilled key members of the Parliament.

Such outlook mirrors the sentiments of many in the United States and Spain, the OECD report said, with the latter coming out as a surprising indicator considering the financial strains that the Spanish government has been dealing with lately.

Yet the satisfactions aired by American and some Europeans for the way their governments have been managing their respective nations pale in comparison to the level seen among Australians, creating an impression that among the developed nations, Aussies were the happiest lot.

And they could not be any happier as the OECD affirmed that Australia appears to be in good hand so far, resulting to economic growth last year of 2.2 per cent, which will be followed through this year by a surge of at least 3.1 per cent.

The year after that will not be any different as OECD said that the country can look forward for a better expansion in 2013 by 3.7 per cent, with analysts noting that the OECD projections came as the country's Reserve Bank had earlier decided to roll back its growth prospect for Australia.

In a response, Federal Treasurer Wayne Swan hailed the OECD nod as a solid proof that our "economic fundamentals remain strong, with our economy expected to grow more strongly than every single major advanced economy over the next two years."

Mr Swan stressed too that the budget he presented earlier this month also won the approval of the 34-nation economic bloc, which deemed the targeted surplus of $1.5 billion in the 2012-2013 budget as both "ambitious and timely."

While the OECD cautioned too that uncertainties in Europe would definitely impact on key economies around the world, Australia included, Mr Swan is buoyed by the fact that "the 2012-2013 budget ensures that the Australian economy remains amongst the strongest in the developed world."

Amidst the challenges lingering in the eurozone, the Treasurer highlighted OECD's growth forecast for China, the country's biggest trading partner, which is projected to advance by 8.2 per cent and 9.3 per cent, respectively, over the next two years.

As the two economies were closely related, with Australia's key commodities shipments firing up China's rapid industrialisation, the country can at least lean on a hefty buffer as Europe deals with its internal difficulties, which hopefully could be resolved soon, Mr Swan said.