English – The Conversation | Australia’s economy slows as households tighten their belts, while AI investment surges by Stella Huangfu, Associate Professor, Sch
Australia's economy experienced a slowdown in early 2026, with GDP growing by only 0.3% and GDP per person declining. This deceleration is attributed to increased spending on essentials due to higher fuel and energy costs, impacting discretionary spending. Despite the broader economic slowdown, private investment, particularly in AI and data infrastructure, saw significant growth, especially in New South Wales and Victoria. AI
IMPACT Highlights AI investment as a growth area within a slowing economy, suggesting its increasing importance in private sector development.