Australia’s Q1 GDP Slows to 0.3% as April Unemployment Rises 0.2 Points
Updated
Updated · Econbrowser · Jun 8
Australia’s Q1 GDP Slows to 0.3% as April Unemployment Rises 0.2 Points
1 articles · Updated · Econbrowser · Jun 8
Summary
Australia’s economy lost momentum in early 2026, with Q1 GDP expanding 0.3% quarter on quarter after 0.9% in Q4, while April employment fell from March.
The slowdown reflected weaker external demand: final sales excluding government and public investment eased to 0.2% growth from 0.6%, as exports dropped and imports rose.
April’s labor data added to signs of softer activity, with the unemployment rate climbing 0.2 percentage points — the only key read so far for Q2 conditions.
Even so, recession calls remain at odds with major forecasts, which still see 2026 growth around 1.3% to 2.0%, though those outlooks depend heavily on lower oil prices and a reopening of the Strait of Hormuz.