AUSTRALIA is not immune to the volatility in the global economy, which is likely to continue, says Treasurer Wayne Swan.
In his weekly economic note, Mr Swan wrote that "bouts of volatility" were likely to continue on the back of problems in Greece and other European economies.
"Determined, consistent and continuing action will be required by European policymakers to deal with the sovereign debt crisis, get their budgets back on a sustainable footing, and restore growth.
"Data out during the week showed Europe's economy remained stalled in the March quarter, with solid growth in Germany offset by contractions in both Italy and Spain.
"Of course, Australia is not immune from events in Europe - as the Budget showed government revenues have been written down by a staggering $150 billion since the onset of the global financial crisis."
Despite the gloomy outlook, Mr Swan said it was important that "we don't lose sight of the fact that our economic credentials are among the strongest in the world".
"We have one of the lowest unemployment rates in the developed world, we have sturdy public finances with very low public debt, we have a AAA credit rating from all three major ratings agencies for the first time in our history, we have contained inflation, we have a huge pipeline of mining investment, and we have a budget returning to surplus next financial year ahead of every single major advanced economy," he said.