Australia's Economic Growth Slows to 0.3% in Q1 2026

Kathmandu. Australian economic growth slowed in the first quarter of 2026, according to government data. The Australian Bureau of Statistics, in a report released on Wednesday, stated that the country's gross domestic product grew by 0.3 percent in the three months to March. This is a significant decrease compared to the 0.9 percent growth rate in the last quarter of 2025.

On an annual basis, Australia's economy expanded by 2.5 percent in the 12 months to March, which is the same as the growth rate in the same period last year. According to the data, household consumption expenditure increased by 0.5 percent during that period, while government consumption expenditure decreased by 0.2 percent. This decline in government spending is considered the lowest quarterly level since September 2022.

After the data was released, Australia's Treasurer Jim Chalmers said that despite the uncertainty and instability in the global economy, Australia's economy is showing resilience. According to him, the latest data indicates that the economy's fundamental structure remains strong, even as it faces various challenges.

During this period, mining sector production decreased by 1.5 percent. It is reported that adverse weather conditions affected production. Similarly, due to a decrease in coal and mineral ore exports, total exports fell by 1.1 percent, while imports increased by 2.1 percent.

According to the Bureau of Statistics, the trade balance had a negative impact of 0.8 percentage points on the quarterly economic growth rate.

Meanwhile, the Reserve Bank of Australia, in its projection released last May, estimated that annual economic growth would fall to 1.9 percent in the June quarter and 1.3 percent by December.