GDP down but Aussie economy 'solid'

Warren Hogan, Chief Economist at ANZ, says Australia's underlying economy is still pretty solid - with a dramatic rebound expected later this year.

(File: AAP)

Warren Hogan, Chief Economist at ANZ, says Australia's underlying economy is still pretty solid, with a dramatic rebound expected later this year.

His comments came as GDP fell by 1.2 per cent, a greater amount than many economists expected.

It is the worst quarterly result since March 1991, with the hit on exports - largely a result of devastating floods - partly blamed for the slump.

The last time GDP contracted was in the December quarter of 2008, at the height of the global financial crisis.