SYDNEY—Australia’s economy slowed sharply in the first three months of 2025, leaving it vulnerable to emerging weakness in world growth as the global trade war and a surge in geopolitical risk undermines the confidence of firms and consumers.

Australia's economy barely grew in the first quarter as consumers stayed stubbornly frugal and government spending, the engine of activity last year, sputtered to a standstill, underlining the need for more policy stimulus.

Consumers refrain from spending despite lower borrowing costs, cooling inflation. Read more at straitstimes.com. Read more at straitstimes.com.