Australian GDP grew by 0.1 per cent in the first quarter of 2024, the strongest increase since March 2023. : Australian GDP grew by 0.1 per cent in the March 2024 quarter and by 1.1 per cent since March 2023 (a seasonally adjusted measure of series size), according to data released today by the Australian Bureau of Statistics (ABS).
Domestic final demand was weak at 0.2 per cent. :
Australian GDP grew by 0.1 per cent in the March 2024 quarter and by 1.1 per cent since March 2023 (a seasonally adjusted measure of series size), according to data released today by the Australian Bureau of Statistics (ABS).
Katherine Keenan, head of national accounts at the ABS, said: “GDP growth was weak in March, with the economy seeing its lowest growth of the year since December 2020. GDP per capita fell for the fifth consecutive quarter, declining by 0.4 per cent in March and 1.3 per cent over the year.”
Domestic final demand remained weak in the quarter and rose by 0.2 per cent. An increase in imports of goods and services was offset by a rise in exports and changes in inventories.
Government spending rose 1 per cent. :
Government spending increased
Government final consumption expenditure rose by 1.0 per cent in March. National spending (+1.2 per cent) and state and local spending (+0.8 per cent) contributed to this increase.
Net trade declined by 0.9 percentage points of GDP as imports (up 5.1 per cent) outpaced exports (up 0.7 per cent). : Economic activity in Australia is weakening as the year progresses, with GDP growth slowing to 0.2 per cent during the December 2023 quarter from 0.3 per cent in the previous quarter.
Inventories added $2.2 billion, contributing 0.7 percentage points to growth:
Inventory inventories built up due to rising imports
The change in inventories rose by $2.2 billion in the March quarter, contributing 0.7 percentage points to GDP growth. Wholesale and retail inventories, which fell in the previous quarter, built up again due to rising imports.
Australian GDP saw a marginal increase of 0.1 per cent in the March quarter of 2024, following a 1.1 per cent increase from March 2023, according to data from the Australian Bureau of Statistics (ABS) (seasonally adjusted series (size measure).
Domestic final demand was relatively weak, growing by 0.2 per cent during the quarter. The increase in goods imports was balanced by higher exports and changes in inventories. Government final consumption expenditure increased 1.0 percent, driven by national expenditure, which rose 1.2 percent, and state and local expenditure, which rose 0.8 percent.
Katherine Keenan said: “GDP growth was weak in March, with the economy seeing its lowest growth of the year since December 2020. GDP per capita fell for the fifth consecutive quarter, declining 0.4 per cent in March and 1.3 per cent over the year. , ABS Head of National Accounts.
Net trade detracted 0.9 percentage points from GDP growth for the quarter, as imports (up 5.1 per cent) outpaced exports (up 0.7 per cent). In particular, imports of goods rose significantly by 6.5 per cent due to rising consumption, while exports of goods saw a modest increase of 1.1 per cent, according to the Australian Bureau of Statistics.
Changes in inventories contributed $2.2 billion to GDP growth in the March quarter, adding 0.7 percentage points to overall growth.
Employee compensation increased by 1 per cent, representing the smallest increase since September 2021 and indicating slowing labour market growth.
Summary :
The Australian Bureau of Statistics (ABS) reports that Australia’s GDP increased by 0.1% in the March quarter of 2024 and by 1.1% since March 2023, based on seasonally adjusted, chain volume measures.
