Economy coping with headwinds: Morrison

Scott Morrison believes Australia's economy is coping "incredibly well" against various international headwinds.

The treasurer was commenting after the Australian stock market tumbled nearly four per cent on Tuesday on concerns about a slowing Chinese economy, while the Australian dollar struck a six-and-a-half-year low.

"These are obliviously difficult days, there are lots of headwinds ... we know that we have to swim against the tide in many respects, but I think we are swimming against the tide incredibly well," he told Sky News.