The Treasury has stuck to its downbeat outlook for the economy despite saying it sees signs of an improving international situation.
In its monthly Economic Indicators update, the department notes recent improvement in the European debt crisis and continued signs of recovery in the United States.
However, it says that is not enough to upgrade its view of the economy which it downgraded following the release of its Budget Policy in February.
The Treasury says while the risks of a global financial meltdown in the near future have abated, those risks may have merely been pushed out into the longer term.
