Federal Treasurer Chris Bowen says a Group of 20 Finance Ministers meeting has confirmed fears the world economy is facing some "serious headwinds".
Mr Bowen attended his first meeting of finance ministers from the globe's top developed and developing economies in Russia at the weekend.
He said the gathering and a number of bilateral meetings had confirmed his worst fears.
"We have seen growth come off the boil in China and we will continue to see that," Mr Bowen told Sky News on Monday.
He said Europe was in persistent and significant recession, while China, along with other emerging economies like Brazil, Russia and India, weren't expected to return the sort of growth rates predicted.
"These emerging economies were expected to be the engine room of growth and that's not translating very much in recent months," Mr Bowen said.
Mr Bowen also confirmed he and Finance Minister Penny Wong would release a fiscal statement prior to the federal election that would take into account changes in the world economy since the May budget.
The statement will include costs related to Australia's regional resettlement deal with Papua New Guinea announced on Friday.
Mr Bowen declined to say when the statement would actually be released.
But the document is separate from the pre-election economic and fiscal outlook released by the departments of Treasury and Finance within 10 days of the writs being issued for a federal election.