Xinhua
04 Jun 2025

CANBERRA, June 4 (Xinhua) -- Australia's economic growth slowed more than expected in the first three months of 2025, according to national accounts figures.

The figures released on Wednesday by the Australian Bureau of Statistics (ABS) showed that the national gross domestic product (GDP) rose by 0.2 percent in the three-month quarter to the end of March and by 1.3 percent in the year to March.

It marks a fall from the 0.6 percent growth recorded in the final quarter of 2024 and falls short of the 0.3 percent growth forecast by economists.

Responding to the data, Treasurer Jim Chalmers said that even "modest growth" is welcome in the current global economic circumstances.

"Our economy continues to grow despite very substantial global headwinds," he said at a press conference.

In its latest economic statement, the Reserve Bank of Australia forecasts GDP growth of 1.8 percent in the year to June.

Wednesday's figures mean that in order to meet the central bank's annual target for June, Australia's GDP would need to grow by 0.7 percent in the second quarter of 2025.

The ABS said on Wednesday that government spending was flat in the first three months of 2025 and that extreme weather events affected domestic demand and exports.

"Weather impacts were particularly evident in mining, tourism and shipping," said Katherine Keenan, ABS head of national accounts.

An analysis published by the federal Treasury on Monday found that natural disasters have cost the economy 2.2 billion Australian dollars (1.4 billion U.S. dollars) so far in 2025.

According to the ABS, net trade detracted 0.1 percent from GDP growth in the March quarter, with coal and gas exports heavily impacted by severe weather events that disrupted production and shipping.

It said that GDP fell by 0.2 percent on a per capita basis following a 0.1 percent rise in the final three months of 2024.