Australia's economy grew 2.5 per cent in year to March AUSTRALIA'S economy grew at a rate of 2.5 per cent in the year to March (seasonally adjusted), according to data released on Wednesday. The slightly softer than expected figures for Gross Domestic Product saw an expansion of 0.6 per cent in the March quarter, against market expectations of a 0.8 per cent increase. The news saw the Australian dollar ease slightly to be trading at 96.1 US cents shortly after 11.30am, against an opening price of 96.48. In Queensland the closest comparable data are the numbers for State Final Demand (which excludes exports), with these showing the state economy also expanded by 0.6 per cent in the quarter, in line with the (upwardly revised) result for the December period. While the GDP numbers point to an economy growing below trend - and at the peak of a mining investment boom - they also reveal another lift in labour productivity, with gross value added per hour worked rising 0.7 per cent in the quarter. AMP Capital chief economist Shane Oliver's immediate reaction to the below trend data was "RBA should have cut (rates on Tuesday) ."