Australia is on the brink of sliding back into another ‘recession’ – in a major blow for Anthony Albanese’s government

Australia’s economic output is shrinking again as immigration soars – threatening to revive a long-running per capita recession.

Gross domestic product per capita – or the average amount produced by every Australian – shrunk by 0.2 per cent in the March quarter, new national accounts data released on Wednesday showed.

Australia had been in a per capita recession since early 2023 until the September quarter of 2024 during a period coinciding with record immigration. 

But GDP per capita sunk into negative territory again in the March quarter – threatening to revive a another per capita recession.

Productivity was flat in the March quarter, plunging by one per cent over the year to March.

Weaker hourly output also potentially risks pushing up inflation as costs of faltering output are passed on the consumers. 

Immigration levels were still high in the year to March with 437,440 people moving to Australia on a net permanent and long-term basis, with this net figure factoring in skilled migrants and international students.

Treasurer Jim Chalmers tried blaming overseas factors, as Donald Trump’s tariffs hamper global growth.

Australia’s economic output is going backwards again in a clear sign the country is less productive as immigration soars (pictured is Sydney’s Town Hall train station)

‘Today’s national accounts show that our economy continues to grow in the face of substantial economic headwinds at home and abroad,’ he said.

‘While overall growth in the Australian economy remains subdued, the private sector recovery we have planned and prepared for is gradually taking hold.

‘With all the uncertainty in the world, any growth is a decent outcome.’

Australia isn’t on the verge of a technical recession, where GDP contracts for two consecutive quarters.

But the 1.3 per cent  annual growth pace is well below the long-run average of three per cent.