Overview

• GDP per person declined by 0.2% in the March quarter after a 0.1% rise in December, raising fears of a return to per person recession
• Public spending dropped 0.4%, marking its largest drag on growth since the September quarter of 2017
• Cyclone Alfred and severe Queensland flooding stripped about 0.3 percentage points from GDP by disrupting mining, tourism and exports
• Household savings ratio climbed to 5.2%, the highest level since mid-2022, as consumers bolstered buffers against uncertainty
• Reserve Bank of Australia anticipates further rate cuts and expects GDP growth to pick up later in 2025 as consumption recovers