Australias economy experiences slow growth due to interest rates, inflation [Video]

Treasurer Jim Chalmers says the federal government’s upcoming May budget will have to respond to sluggish economic growth after new figures showed the economy barely grew in the final months of 2023 and is expected to limp through to the middle of the year, before expected interest rate cuts and tax relief.

In the final three months of 2023, the economy expanded by a slight 0.2 per cent, taking annual economic growth to 1.5 per cent.

The Australian Bureau of Statistics said that growth was driven by government spending and private business investment, while household spending barely moved.

Chalmers said slow economic growth was still significant as the economy grappled with higher interest rates, high but easing inflation, and global …