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Australia's Economy Barely Grows in Q1 as Spending Drops
The Straits Times
|June 05, 2025
Australia's economy barely grew in the first quarter as consumers stayed stubbornly frugal and government spending, the engine of activity in 2024, sputtered to a standstill, underlining the need for more policy stimulus.
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SYDNEY -
Real gross domestic product (GDP) rose 0.2 per cent quarter on quarter in the three months to March, Australian Bureau of Statistics (ABS) data showed on June 4, missing market forecasts of 0.4 per cent.
Year-on-year growth flatlined at 1.3 per cent, when analysts had looked for a pick-up to 1.5 per cent, and remained well short of the 2.5 per cent pace that used to be considered "normal".
The Reserve Bank of Australia (RBA) has already cut interest rates twice since February to 3.85 per cent and the minutes of the May policy meeting showed that it was open to an outsize half-point move as US tariffs darkened the outlook for the global economy.
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