(RTTNews) - Monday, Australian Treasurer Wayne Swan said the economy is expected to operate below capacity for a while yet and for the unemployment rate to continue to rise.

He added that the Australian economy proved its resilience in the face of massive, synchronised recessions in almost all of major economies and performed better than expected at the time of the Budget in May. However, significant challenges and risks remain, Swan said in a function organized by the Australian Business Economists. According to Swan, the global economy and global financial markets remain in a more fragile state than they were prior to this crisis. He added that a sustained global recovery is no sure thing.

Further, he said "Just as all of the monetary policy stimulus won't be withdrawn overnight, nor should the fiscal stimulus be withdrawn sharply or prematurely either."