Treasurer Jim Chalmers has warned it is now likely that some of Australia’s major trading partners will slide into recession while describing the global economy as a “pretty dangerous place”.

Chalmers, speaking at the Regional Development Australia conference in Brisbane, left his speech to comment on the turmoil currently sweeping the economy.

Treasurer Jim Chalmers says the global economy is a “difficult and dangerous place.”Credit:Alex Ellinghausen

Overnight, the Bank of England launched a £65 billion ($109 billion) bond-buying program to quell a crisis of confidence in the UK bond market.

Britain’s £1 trillion ($1.7 trillion) pension system was feared to be on the brink of collapse due to the financial crisis that swept the country after a mini budget was published the last week by the new Chancellor Kwasi Kwarteng.

Interest rates on government debt around the world have soared over the past week amid growing fears that central banks, trying to contain inflationary pressures, could drive the global economy into recession .

Loading

Chalmers, in his most negative comments about the global economy, said it was clear the situation was getting worse.

“There’s no point in insisting that the global economic environment is becoming a pretty dangerous place right now,” he said.

“What had been the possibility of some of our major trading partners going into recession has become a probability.

“It seems more likely than not, in some of the big countries that we compare ourselves to, some of our big trading partners, that they will go into some sort of downturn, if they aren’t there already.”