Treasurer Wayne Swan says Australians should keep concerns about the global economy in perspective.
The local economy's underlying strength is a defence against looming disruptions in the eurozone, he says.
Financial markets are expected to open lower on Monday after US unemployment figures raised concerns.
"We face these challenges from a position of strength," Mr Swan told ABC Radio on Monday.
"We have solid growth, we've got low unemployment, a healthy financial system, strong public finances and a huge investment pipeline."
Inflation was under control and a cash rate at 3.75 per cent left more room to move in providing stimulus to the economy.
Mr Swan said decisive action in Europe was needed to stabilise the eurozone economy.
"There is going to be a very long and painful adjustment in Europe," he said.