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Australia's economic slowdown is just beginning, the experts warn
Key takeaways
- The economy grew just 0.3 per cent in the first quarter of 2026, the Australian Bureau of Statistics revealed on Wednesday, but the figures only captured the first month of the Middle East war.
- Gross domestic product (GDP) per capita went backwards in the quarter, down 0.1 per cent — the first contraction since the start of 2025.
- "We expect per capita household spending to be broadly flat in 2026, while softer hiring will push unemployment close to 5 per cent through 2027," Mr Murphy Cruise said.
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Link copied Share Share article Australia's economic slowdown is just beginning, economists warn, as interest rate rises and cost-of-living pressures weigh on households.
The economy grew just 0.3 per cent in the first quarter of 2026, the Australian Bureau of Statistics revealed on Wednesday, but the figures only captured the first month of the Middle East war.
"Surging inflation, sky-high oil prices and shattered confidence will collide to crimp spending through the rest of the year," Oxford Economics Australia's head of economic research and global trade, Harry Murphy Cruise, wrote.
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