“However, there is considerable risk looming over the global economy. The ongoing US-China situation indeed casts a significant shadow over international economic conditions.”

In March, Treasurer Jim Chalmers said there would be a $42 billion budget deficit next year. Source: AAP / Jono Searle

In April, Australia’s growth outlook was slashed by a major international body as US President Donald Trump’s sent markets into a tailspin.

If the agency’s predictions unfold, about $13 billion would be shaved off Australia’s economy.

The Treasurer expressed the government’s “realistic” perspective on the possible global impacts of Trump’s tariffs but also shared a positive outlook on Australia’s resilience, which includes implementing local policies such as renewable energy initiatives and housing improvements.

“Our administration has overseen growth every quarter since we took office, a contrast to many other advanced economies,” he remarked.