Australian economy grew 0.2% in first three months of the year, the slowest since Covid lockdowns

Australian gross domestic product expanded at a quarterly rate of 0.2% in the first three months of the year, and by an annual rate of 2.3%. Photograph: Steven Saphore/AAP

Australia’s economy slowed in the March quarter as households dipped into savings to keep spending amid a record run of interest rate rises and imports rose faster than exports.

The country’s gross domestic product expanded at a quarterly rate of 0.2% in the first three months of the year, and by an annual rate of 2.3%. Economists had expected GDP growth of 0.3% for the quarter and 2.4% for the year.