Australia Q4 GDP Growth Beats Estimates

2026-03-04 00:36 By Farida Husna 1 min. read

The Australian economy expanded 0.8% qoq in Q4 2025, accelerating from an upwardly revised 0.5% growth in Q3 and topping market estimates of 0.6%.

It was the 17th straight quarter of growth, driven by firm domestic demand across private and public sectors.

Private demand supported growth through household consumption (0.3% vs 0.5% in Q3, linked to discretionary spending amid Black Friday events) and private investment (0.7% vs 3.2%, with elevated spending on data centres and aircraft).

Public demand contributed through government expenditure (0.9% vs 1.1%) and public investment (0.9% vs 3.0%, owing to transport infrastructure projects and higher defence outlays).

Inventories added 0.4 ppts as firms rebuilt stocks through production and imports.

Net trade weighed on growth, with exports (1.4%) rising less than imports (1.8%).

The household savings ratio hit its highest since Q3 2022 (6.9% vs 6.1%).

Annually, GDP grew 2.6%, above forecasts of 2.2% and the fastest increase since Q1 2023.



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Australia Q4 GDP Growth Beats Estimates
The Australian economy expanded 0.8% qoq in Q4 2025, accelerating from an upwardly revised 0.5% growth in Q3 and topping market estimates of 0.6%. It was the 17th straight quarter of growth, driven by firm domestic demand across private and public sectors. Private demand supported growth through household consumption (0.3% vs 0.5% in Q3, linked to discretionary spending amid Black Friday events) and private investment (0.7% vs 3.2%, with elevated spending on data centres and aircraft). Public demand contributed through government expenditure (0.9% vs 1.1%) and public investment (0.9% vs 3.0%, owing to transport infrastructure projects and higher defence outlays). Inventories added 0.4 ppts as firms rebuilt stocks through production and imports. Net trade weighed on growth, with exports (1.4%) rising less than imports (1.8%). The household savings ratio hit its highest since Q3 2022 (6.9% vs 6.1%). Annually, GDP grew 2.6%, above forecasts of 2.2% and the fastest increase since Q1 2023.
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