Australia GDP stays weak as consumers cut spending

Australia's economic weakness persisted in the three months through June, as consumers hunkered down in the face of elevated borrowing costs and stubbornly sticky inflation.

Gross domestic product (GDP) advanced 0.2 per cent from the prior quarter, propped up by government spending and matching economists' estimate, Australian Bureau of Statistics (ABS) data showed on Sept 4. From a year earlier, the economy grew 1 per cent from an upwardly revised 1.3 per cent and forecast of 0.9 per cent.

"Excluding the Covid-19 pandemic period, annual financial year economic growth was the lowest since 1991 to 1992 - the year that included the gradual recovery from the 1991 recession," Ms Katherine Keenan, ABS head of National Accounts, said. The economy expanded 1.5 per cent during the financial year ended June 30.