Joe Hockey insists a recession in Australia is "extremely remote".
The treasurer was commenting the day after the latest national accounts showed unexpectedly soft economic growth, which has raised talk the Reserve Bank may need to cut interest rates again next year.
But Mr Hockey believes the economy will get better in 2015.
"I don't want this idea starting to spread as a result of poorly informed commentary that Australia is going to have a tough 2015. It will get better," he told ABC radio on Thursday.
The latest retail spending figures suggest a recession is far from the minds of consumers.
Spending grew 0.4 per cent in October to $23.742 billion, a pace four times stronger than forecast by economists.
It comes on top of a strong result of 1.3 per cent growth in September that was bloated by the launch of Apple's iPhone 6 mobile.
"It's a good result, it sends a good message about Christmas," Mr Hockey told parliament in response to the October numbers.
Australian National Retailers Association boss Anna McPhee said the figures show actions speak louder than words when it comes to confidence.
But Mr Hockey said the government could not sit back and "wait for things to come to us".
He used a ministerial statement on the final scheduled sitting day of the year to warn that without economic reform, the economy would drift and be more exposed to global volatility.
"Without economic reform, our future prosperity is not assured," he said.
He urged Labor and the Senate to take a more mature and collaborative approach to addressing the challenge of budget repair.
"Blanket opposition and mindless resistance is nothing to boast about if you truly care about Australia's future," he said.
But Opposition Leader Bill Shorten argues Labor has not automatically opposed every government policy.
"I think we reflect what the great mass of the Australian people think," he told reporters in Canberra.
Palmer United Party leader Clive Palmer went further, describing Mr Hockey's comments as "just rubbish".
"When the treasurer goes to New Zealand, he tells everyone how good our economy is. When he goes to London, he tells everyone how good our economy is. He is creating fear in the community to justify (his) bills," he said.
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