FX.co ★ Australia’s Net Exports Drag Deepens in Q1 2026, Widening Negative Contribution to GDP

Australia’s net exports placed a heavier drag on economic growth in the first quarter of 2026, with their contribution to GDP slipping further into negative territory. The net exports contribution fell to -0.8% in Q1 2026, compared with -0.1% in the fourth quarter of 2025.

The data, updated on 2 June 2026, indicate that the external sector weighed more substantially on overall output at the start of the year than it did at the end of 2025. While details on the underlying drivers were not provided, the steeper negative contribution suggests a deterioration in the trade balance’s support to headline growth over the period.

This shift in net exports performance between late 2025 and early 2026 will be closely watched by analysts assessing the resilience and composition of Australia’s growth outlook.