Prime Minister Tony Abbott has called for freer trade and increased global growth in a keynote speech at the World Economic Forum in Switzerland.

He told the audience of business and political leaders that stimulating growth through encouraging business was the single most effective means of promoting continued global progress.

Mr Abbott, who is the chair of the G20 in Brisbane later this year, said the world was 30 million jobs short of where it was ahead of the global financial crisis.

He said, however, the crisis did not change the laws of economics.

"You can't spend what you haven't got," Mr Abbott told the meeting in Davos.

"No country has ever taxed or subsidised its way to prosperity. You don't address debt and deficit with yet more debt and deficit.

"And profit is not a dirty word, because success in business is something to be proud of."

Mr Abbott said that as a trading nation, Australia would make the most of its G20 presidency to promote free trade.

"People trade with each other because it's in their interests to do so," he said.

"And just as trade within countries increases wealth, trade between countries increases wealth.

What's happening in Davos? More than 2,500 political, business and intellectual leaders are taking part in the annual invitation-only meeting in the Alpine resort

More than 2,500 political, business and intellectual leaders are taking part in the annual invitation-only meeting in the Alpine resort It's held under the auspices of the Swiss-based World Economic Forum

It's held under the auspices of the Swiss-based World Economic Forum The Forum's website says it is "committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas".

The Forum's website says it is "committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas". But Davos has been criticised by anti-globalisation protesters and dubbed "fat cats in the snow" by U2 frontman Bono

But Davos has been criticised by anti-globalisation protesters and dubbed "fat cats in the snow" by U2 frontman Bono Australia is prominent at this year's talks because it currently has the chair of the G20 group.

"That's why we should all be missionaries for freer trade.

"At the very least, the G20 this year should renew its commitment against protectionism and in favour of freer markets.

"Each country should renew its resolve to undo any protectionist measures put in place since the crisis."

The Prime Minister said he hoped the G20 would continue to tackle businesses artificially generating profits to chase tax opportunities.

"The essential principle is that you should normally pay tax in the country where you've earned the revenue," he said.

"My hope is to have a really frank leaders-only discussion in Brisbane about the biggest issues we face ... because taxes need to be fair as well as low in order to preserve the legitimacy of free markets."

Mr Abbott also took a swipe at the former Labor government, saying it had decided that post-GFC, the way forward was to "spend our way to prosperity".

"Well, the reason for spending soon passed but the spending didn't stop, because when it comes to spending, governments can be like addicts in search of a fix.

"But after the recent election, I'm pleased to say, Australia is under new management and once more open for business."

Mr Abbott was scheduled to meet with his British and Israeli counterparts before returning to Australia.