The global financial crisis will hurt Australia's economic growth but it is too early to say by how much, Treasurer Wayne Swan said Sunday.

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Speaking from Washington, where he is attending a meeting of G20 finance ministers on the crisis, Swan said Australia's economy was still expected to grow but the worldwide credit crunch would have an impact.

The government's cabinet budget committee were scheduled to meet late Sunday to take action deemed necessary from key meetings of the G20 and International Monetary Fund.

"If you were to be in any country in the world at the moment in these circumstances you would want to be in Australia but we are not immune and it certainly will have a further impact on Australian growth," Mr Swan said.

"It is too early to tell by how much," he told the Australian Broadcasting Corporation.

Economy slowing

Data released last month showed Australia's economy grew at its slowest pace in almost four years in the June quarter, and that the annual growth rate had fallen to 2.7 percent.

Swan said unemployment could also climb in Australia as a result of the crisis which tore 8.3 percent off domestic share prices on Friday and wiped almost 16 percent from the stock exchange over the week.

In Australia's favour was the fact that growth in China, a major purchaser of Australian commodities, would remain relatively strong, he said.

Crisis enters new phase

The treasurer said it appeared that the global financial crisis had "entered a new phase".

"It's a new damaging phase which is producing increased borrowing costs, a contraction in credit and it is now beginning to enter the real economy," he said.

He said the Australian government would consider all options in seeking to manage the crisis, noting that the central bank still had room to move despite a 100 basis point cut in interest rates to 6.00 percent last week.

"But we also do have the capacity should we deem it necessary to provide some stimulus to the economy," he said.

Schemes being considered

Among schemes being considered were broadening the deposit guarantee scheme from the existing proposed 20,000 dollar limit (13,074 US), he said.

But Swan said it did not seem likely that the Australian government would buy shares in banks to restore confidence.

"I don't think that particular suggestion will necessarily be one we will be following through on. But in these times we have every suggestion on the table because these are extraordinary times," he said.

Britain announced last week a 500-billion-pound (850-billion US dollar) bail-out plan that involves the possible part-nationalisation of several of the nation's main banks and a guarantee for inter-bank lending.