Australia's GDP Growth Fall to 0.3 Percent in Q1
The Australian Bureau of Statistics (ABS) confirmed the slowdown, while noting that annual GDP growth held steady at 2.5 percent for the year to March — matching the figure recorded for the 12 months to December 2025.
Household spending offered a modest bright spot, rising 0.5 percent over the March quarter. However, government final consumption expenditure contracted by 0.2 percent in the same period — the weakest quarterly reading since September 2022 — adding to the downward pressure on overall growth.
Trade and mining delivered the heaviest blows. Mining production slumped 1.5 percent over the quarter, which the ABS attributed to weather-related disruptions, while exports fell 1.1 percent on the back of declining coal and mineral ore shipments. Imports, meanwhile, climbed 2.1 percent — with net trade ultimately shaving 0.8 percentage points off GDP growth for the period.
Treasurer Jim Chalmers struck a measured but defiant tone in response, framing the result as a sign of resilience amid turbulent global conditions.
"Our economy's got no shortage of challenges, but it's also got some very sturdy foundations, and you can see that in today's data," he told reporters in Canberra, adding that Australia's economy is holding firm during a period of "very substantial global economic volatility and instability."
Looking ahead, the outlook dims further. The Reserve Bank of Australia, in projections released in May, forecast annual GDP growth would decelerate to 1.9 percent in the June quarter before sliding to just 1.3 percent by December.
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