Economics
Australia's Economy Expands at Slowest Pace in Decade on Housing
- Quarterly growth driven by government investment and exports
- RBA easing designed to embolden households to resume spending
Residential buildings stand along the coastline near Bondi Beach in Sydney, Australia.
Photographer: David Gray/BloombergThis article is for subscribers only.
Australia’s economy expanded at the slowest pace in almost a decade as a prolonged housing downturn weighed on consumer spending, underscoring the central bank’s decision to lower interest rates.
Gross domestic product advanced 0.4% in the first three months of the year from the prior quarter, statistics bureau data showed in Sydney. The economy grew just 1.8% from a year earlier, the weakest reading since the global financial crisis, as households boosted their savings and cut spending in a classic response to wealth erosion.