National accounts data show that the Australian economy expanded by 1.1 per cent in the March 2016 quarter, and by 3.1 per cent year-on-year. However,
wages grew by just 0.4 per cent and 1.2 per cent respectively, while there was a 2.6 per cent decline in Australians' living standards. Exports contributed
one per cent of the growth in GDP for the quarter.
Meanwhile, Adam Boyton of Deutsche Bank says the first negative domestic demand deflator for 16 years is likely to prompt the Reserve Bank to reduce the
cash rate twice in the next 12 months.