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Australia’s economic momentum eased at the start of 2026, with gross domestic product (GDP) growth slowing to 0.3% quarter-over-quarter in the first quarter, down from 0.8% in the fourth quarter of 2025. The latest data, updated on 3 June 2026, highlight a clear moderation in activity as quarterly expansion more than halved compared with the previous period.
On a quarter-over-quarter basis, the current 0.3% reading reflects a weaker pace of growth when compared with the 0.8% increase recorded in the final quarter of 2025, which itself was measured against the third quarter. The quarter-over-quarter framework means each figure represents the change relative to the immediately preceding three-month period, underscoring that the deceleration is not due to base effects over a longer horizon, but to a genuine softening in short-term momentum.
The slowdown from late 2025 to early 2026 will likely be closely watched by investors and policymakers, as it may signal emerging headwinds for Australia’s economy after a stronger finish to last year. While the data do not yet indicate contraction, they point to a more fragile expansion as the year progresses.
