In a statement, association chairman John Pegler said the IMF predicted a very risky period ahead for the global economy and warned the world faced the very real possibility of a recession.

“This is the worst possible time for Australia to be introducing a carbon tax – with Australia’s economic growth predictions slashed from 3% to 1.8% by the IMF,” he said.

“The IMF also stated clearly that the risks for the world economy are all on the downside – meaning these figures could get a lot worse very quickly.”

Pegler said the time could not be worse with the Australian coal industry being asked to carry an $A18 billion increase in costs due to the tax.

“This is a cost that none of our competitors will face and reflects the government’s failure to seriously address the competitiveness of Australian trade exposed industries, including coal,” he said.

Coal is Australia’s largest export earner and was valued at $55 billion in 2008-09.