US interest rate policy, the ongoing fallout from Brexit, rising international protectionism and the performance of China are all risks facing the Australian economy.
But the Organisation for Economic Cooperation and Development believes Australia is well-positioned to handle such potential shocks.
"The speed and strength of the rebalancing processes in response to the end of the commodity boom auger well for the economy's shock-absorbing capacity," it says in its latest survey of Australia released on Friday.
The Paris-based institution says the economy also has the capacity to cut interest rates further and provide fiscal stimulus "than many other OECD economies".
But the OECD does warn a correction to the house-price boom could cut household consumption and lead to mortgage defaults.
At the same time, a renewed plunge in global iron ore and coal prices could cause further cost savings and investment cuts among mining companies, impacting on jobs and incomes.
As it stands, it believes Australian living standards and well-being are generally high, but says the adjustment to the end of the commodity boom has not been painless.
Unemployment has risen and there are increasing concerns about inequality, noting the large socio-economic gaps between Australia's indigenous community and the rest of the population remain.
It urges developing innovation-related skills, which it says are important for the underprivileged to gain work and those displaced by economic restructuring, while helping to reduce gender wage gaps.
"Merely maintaining long-run average productivity growth jeopardises this success," it says.
The survey was finalised before this week's national accounts, which showed a marked turnaround in the economy after a weak spot last year, resulting in an annual growth rate of 2.4 per cent at the end of 2016.
In the survey, the OECD forecasts growth of 2.6 per cent in 2017, rising to 3.1 per cent next year.
This will see the unemployment rate ease from 5.5 per cent this year to 5.3 per cent in 2018.
The jobless rate was 5.7 per cent in January.
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