As Treasurer Scott Morrison makes the final touches to his mid-year budget review, the United Nations has issued a reminder that the global outlook is far from rosy.
In its latest World Economic Situation and Prospects report the UN says the world economy stumbled in 2015 and only a modest improvement is projected for the next two years.
It has cut its 2015 global growth forecast to a mere 2.4 per cent, 0.4 percentage points lower that six months ago, while for 2016 growth has been trimmed to 2.9 per cent from 3.1 per cent.
"Stronger and more co-ordinated policy efforts are need to ensure robust, inclusive and sustainable economic growth," UN assistant secretary-general for economic and social affairs Lenni Montiel says.
Growth has been hurt by a larger than expected slowdown in China - the world's second largest economy - and its likely substantial ripple effects on the rest of the global economy.
It says 29 countries are particularly exposed to China's downturn, including Australia.
Mr Morrison will hand down his mid-year economic and fiscal outlook on Tuesday.
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