The first quarter economic growth in Australia slowed down, influenced by trade dragging and weak consumption.

Data released on Wednesday showed that the Australian economy slowed in the first quarter, despite strong business investment, trade-related drag offsetting this positive impact; at the same time, rising borrowing costs and gasoline prices also dampened consumer demand. With the ongoing conflicts in the Middle East and consecutive policy tightening leading to a decline in household spending, stagnant house prices, and a slight increase in unemployment, this slowdown trend may further intensify. Australian Bureau of Statistics data showed that real GDP growth in the first quarter was 0.3% compared to the previous quarter, slightly slower than the 0.9% growth in the previous quarter. Market expectations were for a 0.5% growth, but there are downside risks. Real GDP growth is maintained at 2.5% year-on-year. The Reserve Bank of Australia believes that in order to avoid triggering inflation, economic growth should not exceed 2% significantly, thus raising interest rates three times this year to 4.35%.