Frydenberg talks markets to US Treasury secretary

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Treasurer Josh Frydenberg has spoken to US Treasury secretary Steven Mnuchin about the global economy and world financial markets.

The recent rebound in equity markets and stabilisation in credit markets, as well as the effects of international border closures were discussed by the pair during a teleconference on Friday morning.

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Josh Frydenberg held a teleconference with Steven Mnuchin, US Secretary of the Treasury, on Friday morning. Supplied

International travel is likely to remain severely restricted well into next year, or until a possible discovery and deployment of a vaccine for COVID-19.

The lack of global people movement is weighing heavily on Australia's tourism and international education sectors.

Mr Frydenberg's talks with Mr Mnuchin, the Trump cabinet's top economic cabinet official, follow the Treasurer's chats earlier this week with International Monetary Fund managing director Kristalina Georgieva and Canada's Finance Minister Bill Morneau.

Ms Georgieva has warned world governments against allowing the coronavirus pandemic to morph into rampant protectionism.

The IMF in April forecast Australia's economy will shrink 6.7 per cent this year and world economic growth to contract 3 per cent.

But Ms Georgieva has since warned the global outlook is "worse than our already pessimistic projection".

Australia may be in a relatively better position due to the virus being under control locally and state governments gradually reopening the economy.

RBA governor Philip Lowe said on Thursday the economic downturn had not been as severe as feared, but the recovery would still be difficult.

The local S&P/ASX 200 has surged about 28 per cent since its March 23 low.'

Mr Frydenberg was due to speak to New Zealand's Finance Minister Grant Robertson on Friday.