Economic growth in Australia continued to accelerate in the last quarter of 2025, according to the Australian Bureau of Statistics (ABS).
The ABS said gross domestic product (GDP) increased by 0.8% in the December quarter of 2025 and 2.6% in the year to December 2025, in seasonally-adjusted terms.
Head of National Accounts Grace Kim said GDP per capita increased for the fourth consecutive quarter and was 0.9% higher than a year ago, the strongest through-the-year growth since the December quarter of 2022.
“There was broad based economic growth in the quarter, with rises observed in a large majority of industries. Public and private demand each contributed 0.3 percentage points to GDP growth,” Kim said in a media release.
Changes in inventories also contributed to growth, reflecting a rebuild in inventory stocks through production and imports, while net trade detracted from growth as the rise in imports outpaced exports.
Commonwealth Bank of Australia economists were expecting GDP growth of 1.0%, giving an annual rate of 2.7%, but some Q4 forecasts were as low as 0.7% to 0.8%.
The ABS said household spending rose 0.3 % in the quarter and 2.4% through the year with discretionary spending gaining 0.4% due to the expansion of Black Friday sales and strong attendance at sporting and concert events
Spending on essential goods and services grew 0.2% in Q4 with essential services up 0.4% but essential goods off by 0.5% as electricity, gas and other fuels expenditure dropped 9.5% due to government rebates and lower usage
Production increased in 17 of 19 industries with mining output up 2.6% as work resumed after scheduled maintenance and agriculture production was 2.5% higher as a result of favourable growing conditions and international demand for Australian meat.
