The stagnant economy has been blamed on a "complacent" prime minister, who is too busy chasing "big headlines, not good outcomes", Labor says.
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While Scott Morrison managed to fend off having a debate on the economy in parliament this week after another global institution slashed Australia's growth rates, Labor isn't letting the issue drop.
Opposition Leader Anthony Albanese on Friday accused the prime minister of being complacent in the face of the slowest economic growth since the 2008-2009 global financial crisis.
His shadow treasurer Jim Chalmers slammed Mr Morrison for chasing "big headlines, not good outcomes".
During sometimes heated clashes in parliament this week, Mr Morrison repeatedly attacked Labor for its spending when it was in government.
"It was a global financial crisis. It happened." Mr Albanese told reporters in Melbourne.
"The prime minister seems oblivious to that. The government needs to stop being complacent."
The state of the economy was a key focus for this parliamentary sitting week after the International Monetary Fund cut its growth forecast for Australia this year to 1.7 per cent from 2.1 per cent.
The Organisation for Economic Cooperation and Development also cut its Australia 2019 forecast to 1.7 per cent last month.
Dr Chalmers told a conference in Canberra that despite these "loud alarm bells" the government still had no plan to address the weakness in the economy.
"This inaction leaves us dangerously and unnecessarily exposed to global shocks," he told an Australian National University conference.
Dr Chalmers also said it was disturbing to see the prime minister turning his back on international cooperation at a time of slowing world growth, using a recent speech to rail against global institutions.
Still, Assistant Treasurer Michael Sukkar has been at the Asia-Pacific Economic Cooperation finance ministers meeting in Santiago, Chile this week.
Mr Sukkar said the meeting focused on developing policies to promote strong growth and prosperity in the region.
"Australia's 28 consecutive years of economic growth are a testament to the benefits of open markets and the broad and deep trade and investment linkages of the Asia-Pacific region," he said in a statement.
Home Affairs Minister Peter Dutton insists the government is spending money at a time of slow economic growth, such as its $100 billion infrastructure program and $7 billion in drought assistance.
But it won't be "splashing the money around" like previous Labor governments.
Mr Dutton said there were concerns about the international economy, but he was encouraged by the latest set of local jobs figures released on Thursday.
They showed the unemployment rate dropped to 5.2 per cent in September from 5.3 per cent.
The result prompted financial markets to pare back expectations of a further interest rate cut when the Reserve Bank board meets in November, although many experts still believe there's a good chance of a cash rate cut to 0.5 per cent by early next year.
The central bank cut its key rate to a record low 0.75 per cent earlier this month, the third reduction this year.
However, Reserve Bank governor Philip Lowe has told the IMF and World Bank meetings in Washington he does not foresee Australian interest rates going negative.
"I'm not going to speculate on ... negative interest rates and quantitative easing in Australia, other than to say that negative interest rates are extraordinarily unlikely in my country," Dr Lowe said.
Mr Albanese said it is 'pretty obvious' there is not much further interest rates can go.
"Monetary policy can't do all the heavy lifting," he warned.
Australian Associated Press
