Swan says 3% world growth doesn't cut it Treasurer Wayne Swan wants major industrialised countries to cut back on austerity measures and expand their economies, saying a world growth of three per cent isn't good enough. Mr Swan will on Saturday address the spring meeting of the International Monetary Fund (IMF) in Washington and warn Asia can't keep doing the heavy lifting for the world and the soft economies of the US and Europe. Although the global outlook improved in the second half of 2012, the recovery remains fragile as many nations try to repair their budgets in the aftermath of the 2008-2009 global financial crisis. "Markets remain edgy and the global economy remains hostage to the outcomes of policy makers in the world's major economies," Mr Swan will tell the meeting. Amid this uncertainty, the IMF is forecasting modest world economic growth of 3.3 per cent for 2013. "And a world growth rate with a three in front doesn't cut the mustard," Mr Swan says. It's critical the G20 and the IMF act to promote the fundamental drivers of global growth and job creation. The present outlook is for robust growth in emerging economies like China and India and slow or negative growth in the US and eurozone. "Asia cannot keep doing all the heavy lifting," Mr Swan says. Policy settings need to be put in place where Europe will start doing their bit also. Mr Swan also repeats his wish for developed economies to take the "handbrake off growth that's coming from mindless fiscal austerity." Many eurozone countries have been instigating tough domestic savings measures to pay down rampant government debt. The federal government is also facing tough times, despite the Australian economy escaping the worst of the global financial crisis. Budget revenues have fallen, as company tax receipts decline due to a softer economy and commodity prices come off their peaks. The local economy is looking at around trend growth of three per cent this year. Mr Swan will on Saturday meet with US Reserve Bank chief Ben Bernanke and Chinese Finance Minister Lou Jiwei. He returns to Australia on Monday.