Access Economics warns of impending recessionA key economic...

Access Economics warns of impending recession

A key economic forecast says Australia will definitely fall into recession this year and has described the Federal Budget as being "buggered".

The latest business outlook from Access Economics says that Australia's prosperity will unwind quickly because of the slowing Chinese economy.

The report says global growth is slowing at a scary speed, and Australia's growth prospects are expected to follow the lead in similarly swift fashion.

Federal Treasurer Wayne Swan told ABC Radio's AM program that budget revenues will be more seriously affected than first thought.

He says the report confirms the very difficult global conditions faced by the Australian economy.

"We face the prospect of the United States economy shrinking, and of course the prospect of China not growing anything like [what] was expected only a few months ago," he said.

"There's no doubt that a slowing China will have a very substantial impact on countries in this region, and most particularly Australia.

"Both those events are deeply concerning for growth in this country and the impact in terms of revenue for the Budget and also the impact on employment."