Australia is fairing well against the global economy, according to a key report released on Monday.

Deloitte Access Economics' (DAE) latest Business Outlook stated that while growth in Australia was set to stay modest in the short term, the economy continued to swim strongly against the global tide.

Deloitte Access Economics partner Chris Richardson said although China is holding up, emerging economy growth remained on the back foot.

"While developed world growth is OK, especially in the U.S., the Fed may be regretting its interest rate hike of late 2015," Richardson said.

"Yet this skew in world growth -- slower emerging economies, and a faster rich world -- makes it less friendly to Australian prospects."

Richardson noted however Australia's output and income growth should be moving back onto the front foot in 2017 and even more so in 2018.

New South Wales (NSW) State Treasurer Gladys Berejiklian welcomed the report and said it highlighted the strength of the NSW economy.

"The DAE Business Outlook states that there is a lot to like about conditions and prospects in NSW," Berejiklian said.

"It is clear that NSW remains the best State in which to live, work and do business."