CANBERRA, Oct. 17 (Xinhua) -- Australian Prime Minister Scott Morrison has vowed to keep a "cool head" despite the nation's slowing economy.
The International Monetary Fund on Tuesday downgraded Australia's projected economic growth for 2019 from 2.1 to 1.7 percent, a full percentage point lower than the 2.7 percent the economy grew by in 2018.
Responding to the estimates on Thursday, Morrison rejected calls from business leaders and the Reserve Bank of Australia (RBA) for an economic stimulus package to boost growth.
"Now is the time for our economic and financial management, one that is about cool and clear heads," he told News Corp Australia.
"It is not a time for policies of panic and crisis."
Morrison and Treasurer Josh Frydenberg have prioritized delivering Australia's first budget surplus in a decade in the financial year 2019-20, with Frydenberg saying that doing so will safeguard the economy.
"A strong budget position helps build the resilience of the economy for external shocks, whenever that may occur, and your ability to respond to those shocks with a fiscal response," he told the Australian Financial Review.
Phillip Lowe, governor of the RBA, and Innes Willox, chief executive of the Australian Industry Group, have urged Morrison to bring infrastructure projects forward to reduce unemployment and promote spending.
However, Morrison has previously argued that the level of public works across the country is already approaching its upper limit.
Peter Costello, former treasurer, said that the answer to the economic slow-down lies in deregulation.
"We need to turn to another arm of policy which has been long forgotten and that's the supply side," he said.
"After 10 years of deficits and 28 years of continuous growth, we could really get a boost by dealing with some of the imbalances that have built up in the economy."
