Australia’s economy stayed stuck in the slow lane in the June quarter as punishing borrowing costs and stubborn inflation squeezed consumers, leaving government spending as the main driver of growth.
Data from the Australian Bureau of Statistics on Wednesday showed real gross domestic product (GDP) rose 0.2% in the second quarter, just under market forecasts of 0.3%. Annual growth dropped to 1.0%, from 1.2% the previous quarter, lows last seen during the depths of the pandemic.
Household spending, which accounts for half of GDP, actually fell 0.2% in the quarter to drag on growth, leaving government spending to keep the economy afloat.