This year, 2012, would likely be as tough or even more difficult than 2011, Australian Treasurer Wayne Swan said on Tuesday in his first weekly economic note for the year.

He said that the strength of the global economy has been the focus in recent week due to the worsening European sovereign debt crisis which led the World Bank and the International Monetary Fund to lower global growth forecasts.

While he acknowledged that the global instability is negatively affecting the country's economy, Mr Swan said Australians should still be optimistic about the economic strengths of the nation.

"It's important sometimes to take a bit of reality check and not lose sight of our economy's rock-solid fundamentals," News.com.au quoted the treasurer.

Mr Swam cited the 3 to 3.25 per cent forecast economic growth rate, low public debt, an unemployment rate significantly lower than the U.S. and Europe, inflation slowdown and resources projects worth $455 billion in the planning stages as proofs that the Australian economy is robust vis-à-vis other nations.

Mr Swan also expressed hope that Opposition leader Tony Abbott will reflect these realities in his Tuesday address before the National Press Club in Canberra.

"Let's hope his speech today is far more like his speech in London where he said our debt is low and we have 'serious bragging rights' about our budget position, and much less like his relentless trash-talking of our economy which is making life harder for Australian businesses," Big Pond News quoted Mr Swan.

In November 2011, Mr Abbott said in a London speech that Australia's net government debt was only 8 per cent of gross domestic product (GDP), budget deficit 4 per cent of the GDP and net interest payments 2 per cent.

Rather than deliberately damage the Australian economy by Mr Abbott's negative comments, the treasurer suggested that the Opposition leader should instead explain to media how he will pay for the $70 billion budget deficit in the Opposition's budget costing and the number of jobs lost resulting from Mr Abbott's removal of $500 million from the car industry.

Mr Swan also promised he would not ease pressuring the large Australian banks to pass in full to home borrowers any overnight cash rate cuts made by the Reserve Bank of Australia (RBA).

Despite recent findings by a newly released survey of a high level of anxiety among Australian bankers, Mr Swan said on ABC radio that he would continue to make frank and fearless comments about the public rage over the unwillingness of the big four to pass in full key lending rate cuts made by the Australian central bank.

At least one of the big four banks - ANZ - has officially broken away from RBA policies in setting key lending rates, while Westpac has indicated that it would follow ANZ's move.

He stressed that Australian lenders are very highly profitable and enjoy rates of return unmatched in other nations.

"I'm very delighted that our banks are profitable, that they are strong, that they are highly capitalised. All of those things are highly desirable features of our banking system but at the same time we need a banking system which is competitive and which delivers to its customers a good deal," he told The Sydney Morning Herald.

Mr Swan said that because of the competitive nature of Australian banks, he is pushing for measures so that unsatisfied bank customers could instead seek a better deal from other lenders. Government interference was cited by a newly released banking report that indicated high levels of anxiety among Aussie bankers.

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