Australia's GDP Grows 0.8% in Q4 2025, Tops Forecasts

Australia's economy expanded by 0.8 percent in the final quarter of 2025, marking its strongest quarterly performance in nearly three years and surpassing economists' expectations of 0.6 percent growth, according to data released Wednesday by the Australian Bureau of Statistics.

The seasonally adjusted figures showed annual gross domestic product growth accelerating to 2.6 percent for the calendar year, up from 2.1 percent in the previous year and above forecasts of 2.2 percent. Nominal GDP rose 1.8 percent in the December quarter, while terms of trade improved by 0.4 percent, reflecting Australia's enhanced purchasing power for imports. The household saving-to-income ratio also climbed to 6.9 percent from 6.1 percent, indicating greater financial caution among consumers.

Grace Kim, head of national accounts at the bureau, highlighted the broad-based nature of the expansion. "There was broad-based economic growth in the quarter, with rises observed in a large majority of industries," she said. Public and private demand each contributed 0.3 percentage points to the quarterly growth, underscoring a balanced recovery.

Household spending increased by 0.3 percent in the quarter and...