Australia’s economic growth sputtered in the first quarter of 2025, registering a meager 0.2 percent increase in GDP. This marks a significant slowdown compared to the 0.6 percent growth observed in the December quarter, raising concerns among economists and analysts.

The annual growth rate, while positive at 1.3 percent compared to March 2024, also reveals a softening trend. These figures, released by the Australian Bureau of Statistics (ABS) on June 4th, paint a picture of a struggling economy.

According to ABS head of national accounts, Katherine Keenan, public spending acted as a major drag on growth, the largest since September 2017. Severe weather events further compounded the situation, negatively impacting domestic demand, exports, and key sectors like mining, tourism, and shipping.

The subdued performance highlights the challenges facing the Australian economy. The impact of extreme weather underscores the vulnerability of certain sectors and the need for robust adaptation strategies. The slowdown in growth warrants close monitoring and could prompt policy adjustments to stimulate economic activity and ensure future stability.