Federal Treasurer Wayne Swan has accused the opposition of voodoo economics, saying its credibility on the subject is a “smoking ruin”.

His comments came after the Reserve Bank predicted on Friday that the Australian economy would grow by 3.25 per cent in 2010, and by 3.5 per cent next year.

“I welcome these stronger forecasts, but we certainly can’t take these stronger forecasts for granted,” Mr Swan told reporters in Sydney on Friday.

“I think we can be optimistic about the future, but there is certainly no room for complacency.”

The government was at one with the forecast views of the central bank, but Opposition Leader Tony Abbott was practising voodoo economics, Mr Swan said.

“(Mr Abbott) has been going out there saying that he will lower taxes, and is therefore somehow pretending there’ll be lower debt,” he said.

“That’s just simply a magic pudding, it’s voodoo economics from Mr Abbott.

“The fact that he could have somebody like Senator Joyce as his finance spokesperson is further demonstration that the Liberal Party’s economic credibility is simply a smoking ruin.”

AAP