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"The budget is in surplus, government debt is close to zero, the unemployment rate is at a 28-year low and inflation and interest rates are at low levels."

Economists are now warning that the risks of a sudden economic slowdown are rising, particularly if surging global oil prices choke profitability, consumer spending and world growth.

Oil prices have more than tripled over the past four years, from around $US18 a barrel in November 2001 to a record $US70 yesterday. In the past year alone they have increased by 60 per cent.

[ Our interest bill soars to $16 billion ]