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The Conversation

Stella Huangfu, Associate Professor, School of Economics, University of Sydney

Australia’s economy slows as households tighten their belts, while AI investment surges

Economy Australia Reserve Bank GDP Australian Bureau of Statistics Inflation Interest Rates

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.

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