Economic growth -economists tip significant slowdown

The release of gross domestic product (GDP) figures on Wednesday is widely expected to show a moderation in economic growth over the first three months of the year.

The consensus among economists is that the figures will show an annual rate of growth of three per cent, compared to 3.9 per cent for the 12 months to December, with a quarterly rate of just 0.3 per cent.

However, some economists have warned the economy is at risk of posting its first quarter of negative growth in more than seven years.

JP Morgan economist Helen Kevans is predicting a 0.1 per cent decline in growth and "the first contraction in the economy since late 2000".

With the March quarter, the first for which the Rudd government assumes full responsibility since winning the November election, a contraction in growth would provide the opposition with another opportunity to question the government's economic credentials.

The release of the latest GDP figures comes a day after some more positive news for the government with the Reserve Bank of Australia (RBA) on Tuesday leaving the official cash rate unchanged at 7.25 per cent.