Australia's Economic Growth Stalls at 1.3% in Q1, Below Expectations

Jun 4, 2025 Australia Australia Business/Economy
Australia's Economic Growth Stalls at 1.3% in Q1, Below Expectations

Australia's economy grew 1.3% in Q1, missing estimates. The RBA cut rates to a 2-year low as inflation eased to 2.4%. Slower growth is expected.

Australia's Economic Growth Stalls at 1.3% in Q1

Australia's economic expansion remained sluggish in the first quarter of this year, growing at 1.3% year-on-year. This figure fell short of economists' forecasts of 1.5%.

Key Economic Indicators

The Reserve Bank of Australia (RBA) previously reduced interest rates to a two-year low during its May meeting. Inflation has also decreased to a four-year low of 2.4%.

Future Outlook

Despite the slower growth, the RBA anticipates a future pickup in GDP, driven by increased consumption and public demand. However, this recovery is expected to be slower than initially projected due to global uncertainties and weaker consumption momentum.

The central bank also noted concerns regarding the potential impact of heightened policy uncertainty on domestic investment and household spending.

By news 1 week ago
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