The International Monetary Fund hailed Australia as one of the top 10 developed counties as it made a comeback from the global financial crisis.

The IMF estimates of global output has ranked Australia as the 8th richest of 33 countries. It is the highest rank that Australia received since IMF estimates began in 1980.

Angus Maddison, a British economic historian, said that Australia was the world's richest country a century ago, with its success ranging from gold, wool, and beef exports. However, the nation sank back to the 17th rank in 1991 when gold ran out and manufacturing became the driving force of global wealth.

Australia rose its rank to the 12th spot by 2008 when the global crisis began. Last year, the nation became the fastest-growing developed country with 1.3 per cent growth, while other countries slipped down. Australia overtook Austria, Iceland, Canada, and Ireland.

The IMF forecasts that Australia will reach the 7th rank by 2013, replacing Netherlands. However, there may be possibilities that Luxembourg, Singapore, and Hong Kong will retain their places due to low tax rates.

IMF advised the Federal Government to change its entitlement spending, increase consumption and fuel taxes, further eliminate mistakes or errors that contribute to lower private savings, foster leverage, and boost investments in housing properties.