Extreme weather weighs on Australian economy as growth slows to 0.2%

Treasurer defends economy despite slowdown, saying with all the uncertainty in the world, any growth is a decent outcome'

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Extreme weather and more cautious consumers have dragged on the economy in early 2025, with growth of just 0.2% in the first three months to March compared to 0.6% in the previous quarter.

Annual growth was steady at 1.3%, the new figures from the Australian Bureau of Statistics showed, as a sharp slowdown in government spending following the end of major cost of living support payments was not offset by a hoped-for lift in business investment.