Gross domestic product, or GDP, is the broad measure of goods and services produced in an economy. The ABS data showed annual growth of 2.5% from March 2025, but the quarterly pace slowed sharply as household spending, public spending and exports weakened.
Table: Australia March-quarter national-accounts indicators
| Indicator | Reported value | Source |
|---|---|---|
| GDP growth, March quarter | 0.3% | ABS / ABC News / Xinhua |
| GDP growth, December quarter | 0.9% | ABC News |
| GDP growth from March 2025 | 2.5% | ABS / ABC News / Xinhua |
| GDP per capita, March quarter | -0.1% | ABS national accounts |
| RBA year-to-June growth forecast | 1.9% | ABC News / RBA |
Source: ABS, ABC News, Xinhua and RBA reporting, 2026.
Grace Kim, the ABS head of national accounts, said growth slowed with modest household and public-sector expenditure and cyclone disruption to mining and export activity, according to ABC News. Xinhua also reported that government final consumption fell 0.2% in the quarter, the weakest result since September 2022.
The release puts the Reserve Bank of Australia in a policy bind. The RBA raised rates earlier this year to lean against inflation pressures, while the March-quarter data show growth losing speed before the full effect of those increases and higher fuel costs had passed through the economy. Monetary policy lag means the effect of a rate move arrives with a delay, often through mortgage payments, business borrowing and consumer spending.
The RBA's May Statement on Monetary Policy said the global outlook had become more uncertain and that higher fuel and oil costs remained an input to domestic production. ABC News reported that the RBA expected Australia's economy to expand 1.9% over the year to June, implying further weakening from the March annual rate.
That baseline is still growth, but it is slower growth. The difference matters for policy language: a central bank can acknowledge a softening economy while still judging inflation too high. If the price pressure comes mainly through imported fuel, tighter rates can reduce domestic demand but cannot directly remove the supply shock.