Prime Minister Malcolm Turnbull is urging people not to jump to the conclusion the economy is sinking into recession after posting its weakest growth performance since the 2008-2009 global financial crisis.

“I don’t think it’s helpful to speculate on that,” the prime minister told broadcaster Neil Mitchell on Melbourne’s 3AW radio on Thursday.

Wednesday’s national accounts showed the economy contracted by 0.5 per cent in the September quarter, the first decline since March 2011 and the largest fall since the GFC.

Economists believe the shocking result will be a one-off, rebounding in the December quarter and avoiding two consecutive quarters of negative growth which constitutes a technical recession.

Mr Turnbull described it as a bump in the road.

“But it’s up to us whether it’s a pothole or a cliff. What it requires is policies that support investment,” he said.

He said it was a wake-up call to the Labor party to get on board with the government’s pro-growth, pro-business investment policies.

Treasurer Scott Morrison hoped it wouldn’t take a recession to encourage Federal Parliament to support the government’s economy-boosting policies, such as company tax cuts.

“I don’t wish for a burning platform,” he told ABC radio.

“I would certainly hope that it wouldn’t be necessary for that sort of terrible result to spur the parliament and others into accepting the important changes that we need.”

Labor stands firm on opposing tax cuts

But Shadow Treasurer Chris Bowen is adamant Labor won’t be supporting the government’s $50 billion, 10-year plan to cut the company tax rate to 25 per cent from 30 per cent.

He says the economy has contracted by 0.5 per cent in the quarter, and the best the treasurer can offer is a plan to boost growth by just 1 per cent over the next 20 years.

Mr Morrison said the shadow treasurer has been supporting company tax cuts since he was “out of short pants”.

“Labor has no credibility on this issue, they are simply running a political game on this of ‘search and destroy’ whether it is on the budget or on economic policy,” he later told Sky News.

– AAP