Australia’s economy grew by 0.3% in the first three months of 2026, slowing from 0.9% growth at the end of 2025, according to the latest Australian Bureau of Statistics figures.
Over the year to March, gross domestic product (GDP) rose 2.5%. But GDP per person – our total GDP, divided by our population – actually fell 0.1% in the quarter. This shows Australians were not necessarily feeling better off, despite the economy still growing overall.
The weaker-than-expected growth result is likely to reinforce the likelihood of the Reserve Bank leaving interest rates unchanged at its June meeting, after lifting rates in February, March and and May.
While inflation remains a concern, today’s figures suggest those rate rises were already beginning to weigh on household spending and economic activity.
Higher fuel prices took a toll
