Lima | Australia and other countries in the Asia-Pacific bloc must raise revenue and cut spending to ensure their budgets are prepared for the next global shock, and they need to embrace “ambitious” reform to lift growth and productivity, the International Monetary Fund says.

In an address to leaders, including Anthony Albanese, at the Asia-Pacific Economic Co-operation summit in Lima, Peru, IMF managing director Kristalina Georgieva said while it was “remarkable” that inflation was retreating globally without recession, “in many countries, it is not reflected in public sentiment”.