Australian Public Spending Adds 0 to Q1 GDP as Operating Outlays Slip 0.2%
Updated
Updated · Reuters · Jun 2
Australian Public Spending Adds 0 to Q1 GDP as Operating Outlays Slip 0.2%
3 articles · Updated · Reuters · Jun 2
Australia’s total public spending made no contribution to first-quarter GDP, ending a run in which government demand had supported growth.
ABS data showed inflation-adjusted operating spending fell 0.2% from the prior quarter to A$159.3 billion, removing the main source of any fiscal lift.
Government and public-enterprise fixed-asset investment still rose 0.9% quarter-on-quarter to A$38.9 billion, but that increase was not enough to boost overall public demand.
The figures point to weaker early-2026 growth momentum, with the public sector no longer providing the cushion it had in earlier quarters.
As households face a 'debt tsunami', is the government's spending freeze pushing Australia towards recession?
With spending plunging and employment weakening, is the RBA fighting the wrong economic battle with rate hikes?