Capital Group International vice-chairman Michael Thawley says he's very confident about the prospects for the Australian economy, notwithstanding his expectation that global markets and currencies could be heading for some tough times in the next year or so.

Mr Thawley, who had a long career as an Australian government adviser and is a former ambassador to the United States before joining the $US1.86 trillion ($2.69 trillion) firm, said that asset managers needed to prepare for a shift from what has been a very benign market with very little volatility since the global financial crisis.