By Tuba Ongun
The GDP in Australia increased 0.2% in April-June from the previous period, unchanged for three quarters in a row, according to data released on Wednesday.
The second quarter figure came in below market forecast of 0.3% and remained at the softest pace since July-September 2022, according to the Australian Bureau of Statistics (ABS).
"The Australian economy grew for the eleventh consecutive quarter, although growth slowed over the 2023-24 financial year," Katherine Keenan, ABS head of national accounts, said.
The quarter-on-quarter growth was helped by government spending, up 1.4% in the same period.
“National non-defense spending drove the growth this quarter and grew for the seventh consecutive quarter. The rise in June was due to continued strength in social benefits programs for health services. State and local expenditure also contributed to growth with a rise in employee expenses,” Keenan said.
Household spending, on the other hand, dropped 0.2% in the three months to June, detracting 0.1 percentage points from GDP growth.
On an annual basis, the GDP fell 1% in the second quarter, slowing from an upwardly revised 1.3% growth in the first quarter.
Australian economy grew 1.5% in the 2023-24 financial year, the weakest since 1991-92, excluding the COVID-19 pandemic.