Australia's Q4 GDP hits a three-year high, surpassing expectations

LootboxPhobia · 2026-03-04T00:58:43+00:00

Australia's economy achieved a 2.6% year-over-year growth in the fourth quarter of 2025, primarily driven by strong private demand and government infrastructure and defense spending. Household spending slightly increased, influenced by electricity subsidies, while the mining sector also performed well, contributing to GDP growth.

LootboxPhobia

2026-03-04 00:58:43

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Investing.com - Australia’s economy achieved its fastest growth in three years in Q4 2025, driven by strong private demand and increased government spending on infrastructure and defense.

Data released by the Australian Bureau of Statistics on Wednesday showed that GDP grew 2.6% year-over-year for the three months ending December 31. This exceeded expectations, as the market had anticipated growth to remain flat at 2.1% from the previous quarter.

Quarterly GDP growth was 0.8%, higher than the 0.7% forecast.

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The growth was mainly supported by stable household spending, which increased by 0.3% this quarter. Shopping events like Black Friday and a series of sports and music concerts boosted discretionary spending.

Consumer spending was partly aided by government electricity subsidies, with Canberra intervening to curb the impact of high energy prices.

This led to a 0.9% increase in government expenditure this quarter, with investments in transportation infrastructure and defense assets driving this trend.

The Australian Bureau of Statistics also reported that key mining sectors grew 2.6% in the quarter, contributing 0.3 percentage points to GDP growth. Rising commodity prices also benefited mining companies.

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