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Wednesday’s national accounts release from the Australian Bureau of Statistics (ABS) revealed that Australia’s per capita GDP declined by 0.2% in Q1 2025 and by 0.4% year-on-year.
This represented the ninth decline in eleven quarters, with per capita GDP down a total of 1.7% over that period.
The overall GDP growth of 0.2% also badly undershot the Reserve Bank of Australia’s (RBA) forecast of 0.45% growth and means that a growth rate of 0.7% will be required in Q2 2025 to meet the RBA’s first-half forecast – a rate not seen since Q2 2022:
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.