The GDP figure comes as the Reserve Bank of Australia slashed rates to its lowest level in two years to bolster growth.

Australia’s economy slowed sharply in the first quarter, leaving it vulnerable to emerging weakness in world growth as the global trade war and a surge in geopolitical risk undermine 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.