Slow economic growth a serious concern for business

Media Release: 3 June 2026

The Australian Chamber of Commerce and Industry (ACCI) says today’s national accounts figures showing a slowing economy is a major concern for business.

Australia’s largest and most representative business network also warns the figures released today do not cover the full impact of the fuel crisis and recent successive rate rises.

The March figures showed the economy grew by just 0.3 percent in the quarter and 2.5 per cent for the year. GDP per capita went backwards by 0.1 per cent over the quarter.

ACCI Chief of Policy and Advocacy David Alexander says while there are some rays of sunshine in the data, storm clouds are emerging.

“The figures show an economy doing poorly in the March quarter, even before the big hits on fuel prices and interest rates.

“The outlook for business is very worrying, and the prospect of higher taxes on business investment and trusts only adds to that concern.”

New business investment grew 5.7 per cent in the quarter, chiefly driven by extraordinary levels of investment in data centres driven by AI demand.

“The increase in new business investment is very welcome and will help to sustain future economic activity,” Mr Alexander said.

Household spending continued to grow, up 0.5 per cent in the quarter, but this has mainly been driven by increasing prices in energy and fuel.

The National Accounts reveal a fall in net exports of 0.8 per cent, with a decline in coal and iron ore exports, leading to Australia’s first trade deficit since the December quarter of 2017.

Mr Alexander pointed to the sharp decline in productivity growth, with labour productivity at -0.6 per cent for the quarter, as a key cause for concern.

“Our poor productivity performance remains a major constraint on the economy, and the government must recognise the serious productivity impediments coming from more restrictive workplace relations laws and increasingly onerous regulation and red tape.