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Posted: 2023-06-07 01:44:34

Australia's economy grew 0.2 per cent in the first three months of 2023, according to the Bureau of Statistics (ABS).

It means the economy is now growing at an annual rate of 2.3 per cent, down from 2.7 per cent at the end of 2022, signalling a marked slowdown in economic activity.

Economists were expecting a higher growth rate.

"This is the sixth-straight rise in quarterly GDP but the slowest growth since the COVID-19 Delta lockdowns in September quarter 2021," Katherine Keenan, the head of National Accounts at the ABS, said.

The household saving ratio fell to 3.7 per cent in the March quarter, from 4.4 per cent.

It is sitting at the lowest level since the June quarter 2008, which was during the global financial crisis.

The fall in the rate of saving has been driven by rising interest payments on mortgages and higher prices for goods and services.

"The household saving ratio fell to its lowest level in nearly 15 years," Ms Keenan said.

GDP per capita declines, housing investment declines

Looking beneath the headline rate of growth, the level of economic activity per person deteriorated across January, February and March. 

Population growth outpaced economic growth, so GDP per capita - which measures the amount of economic activity per person - fell by 0.2 per cent in the March quarter.

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