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Australia's economy grew by 0.1 per cent in the March quarter, with the country on the edge of a recession. The growth is attributed to the increase in interest rates, moderate inflation, and global uncertainty. However, the economy has experienced its lowest growth in years, and household spending remains a significant risk. Dwelling investment, particularly in new construction, has declined, contributing to stress in housing and rental markets. Despite the negative news, there are some bright spots, such as healthy household income growth and an expected improvement in economic conditions in the next six months. However, the decline in the household saving rate to 0.9 per cent implies that households have smaller buffers to support their spending in the future.
