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Economic Buzz: Australian economy expands 0.3%, weakest pace in a year
03-Jun-2026 11:15
Australia's economy grew 0.3% quarter-on-quarter in Q1 2026, slowing sharply from 0.9% growth in the previous quarter and marking the weakest expansion in a year. The slowdown was driven by softer household and government spending, weather-related disruptions to mining activity, and weaker export demand. Net trade subtracted 0.8 percentage points from growth as exports fell 1.1% and imports rose 2.1%. However, domestic demand remained supportive, led by strong private investment, particularly in machinery and equipment linked to data center projects. On an annual basis, the economy expanded 2.5%.

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