Australia’s economic growth slows sharply in March quarter figures
- 12 hours ago
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Australia’s economy continued to grow in the March quarter, but at a slower pace than expected, according to the latest figures from the Australian Bureau of Statistics.
Gross Domestic Product (GDP) increased by 0.3 per cent during the quarter and was 2.5 per cent higher than a year earlier. However, growth slowed from the previous quarter, while productivity recorded its largest decline in two years.
The ABS said higher interest rates, rising fuel costs and disruptions caused by cyclones affected household spending, mining activity and exports.
Household spending rose modestly by 0.5 per cent, with families spending more on essential services such as electricity and fuel following the end of government rebates.
Despite the slower growth, business investment remained a bright spot. Private sector investment increased by 6 per cent, driven by a strong rise in spending on machinery and equipment, marking the biggest increase in that category in three decades.
Treasurer Jim Chalmers described the economy as resilient despite global uncertainty, highlighting strong private investment and annual growth that remains ahead of many advanced economies.
Meanwhile, the Opposition argued the figures show ongoing pressure on households and businesses, pointing to weaker productivity, falling GDP per person and rising cost-of-living challenges.
The latest data reflects an economy that is still growing, but facing continued pressure from higher living costs and a challenging global environment.
Source : PS News
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