Australia is about to slide back into another ‘recession’ – in a big blow to the government of Anthony Albanese

The economic output of Australia shrinks again as immigration rises – threatens to breathe new life into a long -term recession per head of the population.

Gross domestic product per head of the population – or the average amount produced by each Australian – shrunk by 0.2 percent in the quarter of March, new national account data released on Wednesday.

Australia was in a recession per head of the population from the beginning of 2023 to the quarter of 2024 in September for a period that coincided with record -high immigration.

But GDP per head of the population sank again in negative territory In the quarter of March – threatening to breathe new life into a new recession per head of the population.

Productivity was right in the quarter of March and fell by one percent during the year.

Weaker output per hour is also in danger of pushing inflation Because the costs of faltering output are passed on consumers, so that companies can cover wages.

The immigration levels were still high in the year to march with 437,440 people who moved to Australia on a permanent and long -term basis, whereby this net figure is waived from competent migrants and international students.

Treasurer Jim Chalmers tried to blame foreign factors, while the rates of Donald Trump hinder worldwide growth.

The economic output of Australia is declining in a clear sign that the country is less productive as immigration rises (the train station of the Sydney town hall)

“Today’s national accounts show that our economy continues to grow in the light of substantial economic headwind at home and abroad,” he said.

‘Although the overall growth in the Australian economy is modest, the recovery of the private sector that we have planned and prepared is gradually taking.

“With all the uncertainty in the world, every growth is a decent result.”

Australia is not at the point of a technical recession, where the GDP contracts for two consecutive quarters.

But the annual growth rate of 1.3 percent is far below the long -term average of three percent, despite the fact that Australia relies on strong population growth to stimulate economic activity.

Oxford Economics Lead -economist Ben Udy said that a weak economic activity could see the reserve bench lower on 8 July on July 8, although the June inflation data is not due to release until the end of next month.

“The RBA will keep a close eye on further signs that the weakness in the activity – if that proof continues to collect, can choose to reduce the rates in July, a little earlier than our current predictions suggest,” he said.

Senior economist Pat Bustamante from Westpac said that Australia ran the risk of having both weak economic growth and a return to high inflation.

Gross Domestic Product per Head of the population – or the average amount produced by each Australian – shrunk by 0.2 percent in the quarter of March, according to new national account data released on Wednesday (Prime Minister Anthony Albanese is depicted)

“This risk has been exacerbated by global uncertainties with regard to American trade policy that has weighed on trust and the willingness to invest and outsource,” he said.

‘Without a material collection in private demand, the economy could be determined for a period of modest growth.

“As a result, policy makers continue to get stuck between supporting growth and managing inflation risks.”

The Futuresmarkt sees the Reserve Bank lower the interest rates three more times, from an existing level of 3.85 percent, after exemption in May to 3.1 percent towards the end of 2025.