Australian Economic Update

Australia's GDP rose a modest 0.3% q/q in Q1 2026 as moderating household incomes and the end of energy subsidies weighed on consumption. While business investment remains exceptionally strong, ANZ expects growth to soften further throughout the year, keeping interest rates on hold.

Key Takeaways

• 1.Australia's GDP grew by 0.3% q/q in Q1 2026, indicating the start of a slowing growth trend.
• 2.Household consumption growth is increasingly driven by essential spending as energy rebates expire, while discretionary spending remains weak.
• 3.Business investment remains a bright spot, posting 5.7% q/q growth, significantly driven by data-center related investment.

Table of Contents

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• Australia's Q1 2026 GDP: Seeds of a slowing in growth
• Important Notice

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