Australia has emerged from a per-capita recession, experiencing its strongest economic growth in two years. According to newly released national accounts data from the Australian Bureau of Statistics (ABS), the country’s Gross Domestic Product (GDP) increased by 0.6 per cent in December, marking the highest growth rate since December 2022. Over the past year, the economy has expanded by 1.3 per cent.
Katherine Keenan, head of national accounts at the ABS, noted that this modest growth was widespread across various sectors of the economy. The surge in GDP was bolstered by both public and private spending, alongside a notable rise in exports of goods and services. After seven consecutive quarters of negative growth on a per-person basis, per-capita GDP finally saw a marginal improvement of 0.1 per cent in December.
Treasurer Jim Chalmers expressed optimism regarding the economic momentum, pointing out that the data signifies considerable progress. He highlighted that inflation is decreasing, incomes are on the rise, unemployment remains at a low level, and interest rates are also declining, all contributing to a recovery in growth.
The economic boost was fuelled by increased household spending, which rose by 0.4 per cent after stagnating in September. This uptick coincided with major retail events like Black Friday and the Christmas shopping season. Additionally, both public and private investment activities saw an increase, while the household savings ratio improved to 3.8 per cent.
Overall, these developments are encouraging signals of Australia’s economic recovery, suggesting a more optimistic outlook moving forward.