Talk about the Australian economy heading towards a recession is "utterly irresponsible" and "absolutely unhelpful", Treasurer Wayne Swan says.
He says the government has done everything it can to protect the country from the most difficult global conditions in 25 years and talk of possible recession won't help matters.
"I think that sort of talk is absolutely unhelpful," Mr Swan told ABC Radio.
"I think it is utterly irresponsible to speculate about that and I certainly won't be doing that."
Mr Swan would not be drawn on whether the Reserve Bank of Australia (RBA) should cut interest rates after a series of weaker-than-expected economic data.
"I certainly think Australian home owners would welcome some relief but that is entirely a matter for the independent Reserve Bank," he said.
The RBA is widely tipped to leave its key cash rate unchanged after Tuesday's monthly board meeting.
Recent indicators have all pointed to a slowing domestic economy - retail sales recorded their biggest monthly decline for seven years in June, demand for credit continues to be weak and building activity is subdued.
The stock market has suffered heavy losses and business confidence is at a 14-year low.
However, Mr Swan denied the first Labor budget in 13 years had slowed the economy too much.
"Our May budget struck the right balance between fighting inflation on the one hand and investing in the future on the other," he said.
"(But) we have perhaps the most difficult global conditions in over 25 years.
"Business and consumer confidence around the world has taken a hit on the back of the global financial market turbulence and the oil shock."
