Stalled Government spending and a drop in public investment contributed to an almost stagnant Australian economy in the first quarter of the year.
Australian Bureau of Statistics (ABS) figures released today showed Australian gross domestic product (GDP) rose 0.2 percent in the March quarter and 1.3 percent compared to the March quarter of 2024.
ABS Head of National Accounts Katherine Keenan said GDP per capita fell 0.2 percent this quarter, following a 0.1 percent rise in the December 2024 quarter.
“Economic growth was soft in the March quarter,” Ms Keenan said.
“Public spending recorded the largest detraction from growth since the September quarter 2017 (and) extreme weather events reduced domestic final demand and exports.”
She said weather impacts were particularly evident in mining, tourism and shipping.
Ms Keenan said there was no growth in Government final consumption expenditure in the March quarter.
“State and local governments spent less on social benefits to households for energy bill relief.
“This was offset by more Commonwealth government spending on defence. Commonwealth spending on social benefits to households remained low.”
She said public investment fell two percent, with investment by public corporations driving the fall, following record levels of investment in the December quarter.
“Energy, telecommunications, rail and road project completions and delays drove the decline.”
