According to the national accounts, the economy grew just 0.3 per cent in the September quarter and 0.8 per cent annually – the weakest non-pandemic reading since the 1990s recession.

The ABS reported that education exports fell nine per cent in the September quarter compared to last year, dropping from $13.6 billion to $12.4 billion.

“Our economy is stuck in low gear and the handbrake on international education is a big reason for that,” Universities Australia Chief Executive Officer Luke Sheehy said.

“International students drove half of Australia’s economic growth last year.

“It makes no sense to put a handbrake on a $50 billion industry that fuels our economy, especially when other sectors are struggling.

“The Government has been using Ministerial Direction 107 to reduce international student numbers since last December and now we are seeing the damaging effects in the data – our outer suburban and regional unis are being hit the hardest.

“Every dollar universities earn from international students goes straight back into Australian education and research.

“At a time of growing budget pressures, we should be investing in our most successful sectors, not curtailing them. It’s the key to building a stronger, more prosperous future for all Australians.”