First-quarter GDP growth of 0.3% undershot expectations of 0.5%, signaling weaker economic momentum for Australia.
Australia’s economy expanded 0.3% quarter-over-quarter in Q1 2026, down from 0.8% in Q4 2025. The figure fell short of the 0.5% consensus forecast, marking the slowest growth since Q3 2025.
Analysts had anticipated a rebound following a strong finish to 2025, but subdued household spending and softer business investment weighed on output. Year-over-year growth also decelerated, reinforcing concerns about domestic demand.
The Australian dollar showed limited reaction, with AUD/USD holding near session lows as traders awaited further cues on monetary policy.