Australia's economy slows sharply in March quarter

Australia’s gross domestic product expanded by just 0.3% in the March quarter, down from 0.9% in the previous three months and below the 2.5% annual growth target. The slowdown was driven by the country’s first net trade deficit since 2017, higher oil prices and a modest rise in investment in data‑centre projects, while government spending fell 0.2% ‑ its weakest quarterly growth since September 2022. Household consumption increased only 0.5% and essential‑goods spending rose 0.8%.

Economic analyst Christian Baylis warned that GDP per‑capita actually fell 0.1%, indicating a productivity recession. He cautioned that lower output per worker and rising costs could push businesses to consider offshore locations such as New Zealand or Singapore, and urged policymakers to focus on productivity incentives for SMEs.