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Australia Q1 GDP Implies Slow Growth Over Rest of 2026, ANZ Says

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Australia's first-quarter national accounts show that growth over the course of 2026 will be at a soft pace, according to a Wednesday report by ANZ.

ANZ noted that household consumption rose 0.5%, showing a rise in essential spending. Discretionary consumer spending was weak, rising just 0.1%, while real household income growth is moderating rapidly. Also, real per capita household incomes fell 0.7% after a rise of 0.9% in the fourth quarter of 2025 and are now just 0.3% higher over the year, the bank added.

The bank expects a further softening in real income growth over the year.

ANZ said that much of the strength in private demand reflected the shift from public to private spending as energy subsidies came to an end, and strong growth in data-center-related investment, which is offset by higher imports.

The strength in private demand does not suggest that interest rates may "need to go higher," ANZ added.

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