A leading economic forecaster augurs that new IMF figures depicting strong positive growth in Australia's economy do not necessarily reflect a "rip snorter" of a recovery is on the way any time soon.

An Access Economics report says Federal Government cutbacks in coming budgets will adversely affect employment and spending in the capital.

The IMF speculated the Australian economy to grow at 2.5 per cent this year, up from the 2 per cent originally forecast last October.

In addition, the figures come as Access Economics reports its latest quarterly business scenario, which warns of soaring interest rates and a less-than-expected economic recovery as the country heads out of the troubling waters of global economic instability.

Access Economics director Chris Richardson, "Its problem is not now, its problem is the recovery may be weaker than that seen in much of the rest of Australia".

The government is obliged to lower its spending - perhaps starting in the coming budget.

It is also revealed that the Government will have to undertake tough decisions in this pre-election Budget.