Treasurer Jim Chalmers has begun tilling the soil for increased spending closer to the next federal election, saying the challenge of fighting inflation is likely to transform into one of combating declining economic growth.

Speaking from the G20 in Brazil where he had just forecast anaemic growth when the latest national accounts are released next week, Dr Chalmers said he would eventually have to turn his hand to dealing with weak growth, which was the “inevitable consequence” of sustained high interest rates, inflation and global uncertainty.