Key facts
- Australia's economy decelerated in the last quarter.
- U.S. nonfarm productivity growth in Q1 was revised down to 0.3% annualized.
- U.S. unit labor costs in Q1 were revised down to an 1.8% increase.
- Argentina's economic activity grew 5.5% year-over-year in March.
- Croatia's GDP growth slowed to 2.2% year-over-year in Q1.
- Turkey's economy grew 2.5% year-on-year in Q1.
- Angola's GDP expanded by 5.3% year-on-year in Q1.
- Costa Rica's fiscal deficit narrowed to 3.4% of GDP on a 12-month rolling basis as of March.
- Hungary's GDP grew 1.7% year-on-year in Q1.
- Q1 Labour Account report indicates seasonal labor market fluctuations.
Global economic performance in the first quarter presents a varied landscape. Australia's economy experienced a deceleration, with higher fuel costs and rising interest rates impacting growth, though a surge in data center investment helped to cushion the overall effect. In the United States, nominal growth has significantly accelerated, indicating a robust expansion in economic output. However, U.S. nonfarm productivity for the first quarter was revised downward to a 0.3% annualized rate, the slowest pace since the first quarter of 2025. Unit labor costs saw a downward revision to an 1.8% increase. Economists are looking to AI integration as a potential driver for future productivity gains. Argentina reported a strong economic performance, with activity growing 3.5% month-over-month and 5.5% year-over-year in March. First-quarter data for Argentina showed a 0.3% quarter-over-quarter and 1.7% year-over-year expansion, primarily fueled by agriculture, fishing, mining, and financial intermediation, although manufacturing and services sectors showed weakness. Croatia's GDP growth slowed to 2.2% year-over-year in the first quarter, falling below projections from the Croatian National Bank, the European Commission, and market analysts. Quarter-over-quarter growth in Croatia stagnated, contrary to expectations. Turkey's economy expanded by 2.5% year-on-year in the first quarter, also undershooting forecasts. While household spending rose by 4.8%, a significant 12.7% decline in exports and a contraction in industrial manufacturing acted as drags on the economy. Angola's GDP grew by 5.3% year-on-year in the first quarter, benefiting from a strengthening services sector and a reduced contraction in oil output. Seasonally adjusted GDP in Angola increased by 1.4% quarter-on-quarter. Costa Rica's fiscal deficit narrowed to 3.4% of GDP on a 12-month rolling basis as of March. Revenues fell to 3.7% of GDP in Q1, while expenditures declined to 4.4% of GDP, with the debt-to-GDP ratio at 59.2% by the quarter's end. Hungary's GDP grew 1.7% year-on-year in the first quarter, aligning with the preliminary estimate. This recovery was supported by inventory increases and government income distribution policies, though concerns about the sustainability of this upturn persist. The Q1 Labour Account report also noted predictable seasonal fluctuations within the labor market.
Looking ahead, economists anticipate AI integration to potentially boost future U.S. productivity. Concerns remain regarding the fragility of Hungary's economic upturn. The Q1 Labour Account report highlights predictable seasonal labor market fluctuations as a recurring aspect of quarterly economic data.