Speaking at a business event in the township of Armadale on Tuesday evening, the central banker cited issues such as Brexit, heightened tensions in the Middle East, and divisions between Japan and South Korea as contributing factors that have stifled the world economy.
But the most prominent threat to global growth, according to Lowe, is the ongoing trade situation caused by the United States.
"Over the past year there has been no growth at all in international trade, despite the global economy growing at a reasonable rate. This weakness on the trade front is flowing through to factory output, with growth in industrial production slowing considerably."
With Australia's rate of economic growth landing well short of market expectations for the financial year to 2019 at just 1.4 percent, the RBA followed the recent moves of other central banks around the world and decided to slash interest rates, making back-to-back cuts in June and July.
Currently sitting at a record low of 1.0 percent, Lowe said it's likely that an extended period of low interest rates will be required, adding that the Board of the Reserve Bank is prepared to ease monetary policy further at next Tuesday's meeting, if needed to support sustainable economic growth.
On top of the challenges Australia faces internationally, domestically, the country is also suffering with a pull back in the real estate market, weak consumer spending and a severe ongoing drought.
"In some areas conditions have been the driest on record," Lowe said.
"Reflecting this, farm output in Australia has fallen for the past two years and there has been a sharp drop in farm income as farmers have had to cope with the increased costs for obtaining feed and water."
"These difficult conditions have contributed to the weakness in overall household incomes and consumption, and the effects are particularly felt in regional communities. The drought has also put upward pressure on food prices over the past year, particularly for bread, milk and meat."
But despite the ongoing threats to Australia's 28-year period of consecutive economic growth, Lowe expects to see a "modest pick-up in the quarters ahead.
"This outlook is supported by a number of developments, including lower interest rates, the recent tax cuts, the depreciation of the Australian dollar, ongoing spending on infrastructure, the stabilization of the housing markets in some cities and a brighter outlook for the resources sector," he said.
"(However) the strength and durability of this pick-up remains to be seen."
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