Breaking: Australia's economy growing at 2.5 per cent annually as slowdown begins

Australia's economy growing at 2.5 per cent annually as slowdown begins Wed 3 Jun 2026 at 11:42am Australia's economy grew at an annual rate of 2.5 per cent in the March quarter, the same as in the previous quarter. But on a quarterly basis, the economy grew by just 0.3 per cent, which was much weaker than the 0.9 per cent recorded in the previous quarter. The slowdown in the quarterly rate of growth coincided with the Reserve Bank's decision to lift interest rates in February and March. The RBA has forecast the economy to expand by 1.9 per cent over the year to June, so it is expecting a further weakening of the economy in coming months. Grace Kim, ABS head of National Accounts, said: "Economic growth slowed in the March quarter, with modest household and public sector expenditure as well as cyclone disruptions to mining and export activities."