Australia's economy has finally climbed out of a per-capita recession, thanks to the strongest quarter of growth in two years. New data from the Australian Bureau of Statistics (ABS) shows GDP grew by 0.6% in the December quarter, marking the highest growth since December 2022. Over the past year, the economy grew by 1.3%.
Katherine Keenan, head of national accounts at ABS, said growth was seen across the board, with both public and private spending contributing. Exports of goods and services also helped boost the economy. After a tough seven quarters of economic contraction on a per-person basis, per-capita GDP finally ticked up by 0.1% in December.
Treasurer Jim Chalmers called the data a sign that the economy is picking up momentum, saying, "These numbers for the December quarter reflect the substantial and very encouraging progress Australians are making together in our economy." He highlighted that inflation is down, incomes are rising, unemployment is low, interest rates are easing, and now growth is strengthening.
The boost came largely from increased household spending—up 0.4% after being stagnant in September—during Black Friday sales and Christmas shopping. Both private and public investment were also up for the quarter, and Australians saved more, with the household savings ratio rising to 3.8%.
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