One recession away from downgrade: Eslake

Respected economist Saul Eslake believes Australia is one recession away from losing its triple-A rating.

The Bank of America Merrill Lynch chief economist believes there is a one-in-four chance of Australia experiencing a recession in the next two years which would be the first in 24 years.

"If the budget remains on the trajectory that it's likely to in the absence of any action to put it on a better path towards surplus ... that's not a position we want to be in," he told Sky Business on Wednesday.