By Stella Huangfu
Publication Date: 2026-06-03 04:33:00
Australia’s economy grew 0.3% in the first three months of 2026, slowing from 0.9% growth at the end of 2025, according to the latest figures from the Australian Bureau of Statistics.
In the year to March, gross domestic product (GDP) rose by 2.5%. But GDP per person – our total GDP divided by our population – actually fell 0.1% this quarter. This shows that although the economy as a whole is still growing, Australians have not necessarily been better off.
The weaker-than-expected growth result is likely to increase the likelihood that the Reserve Bank will leave interest rates unchanged at its June meeting, after raising rates in February, March and May.
While inflation remains a concern, today’s numbers suggest that these rate hikes have already begun to weigh on household spending and economic activity.
Higher fuel prices took their toll
The war in the Middle East, which began on February 28, had a significant impact on the Australian economy through increased fuel and fertilizer revenues.
