The Currency analytics
By James Thorp
Australia's economy just delivered. GDP jumped 0.8% quarter-on-quarter in Q4 2025, way past the 0.6% forecast economists were expecting and crushing the measly 0.
The numbers pretty much show Australia's doing better than most people thought. Consumer spending drove a big chunk of the growth, with Aussies opening their wallets despite…
Rising global demand for Australian commodities pumped up national income, with export volumes climbing across the board.
Inflation's still the elephant in the room though. Consumer prices rose 3.2% year-on-year in Q4, well above the Reserve Bank of Australia's target range.
Employment data looks pretty solid. New jobs popped up across construction, retail, and professional services, which helped boost consumer confidence even with inflation eating…
Government spending definitely helped. Infrastructure projects across the country pumped money into the economy, with the federal government's $120 billion infrastructure plan…
Markets reacted fast. The Aussie dollar gained 0.3% against the US dollar right after the data dropped, though it gave back some gains later in the day.
Treasurer Jim Chalmers couldn't hide his excitement during a March 4 press conference. "These numbers show Australia's economic fundamentals are rock solid," he said, basically…
The construction sector finally woke up after months of sluggish performance. Master Builders Australia reported new housing starts jumped 5% in Q4, driven by low interest rates…
Retail sales provided another big boost to the GDP numbers. The Australian Retailers Association said sales rose 3% during the holiday season, with electronics and clothing…
The housing market kept its hot streak going. CoreLogic data showed national home prices rose 1.2% in December alone, with Sydney up 1.8% and Melbourne gaining 1.4%.
Tourism numbers also looked decent. Tourism Australia said international visitors rose 10% in Q4, mostly from Asia and Europe.
Agricultural output surprised everyone. The Bureau of Agricultural and Resource Economics reported crop yields jumped 5% in Q4 thanks to good rains and better farming techniques.
The Australian Chamber of Commerce thinks things are looking up. Chief Economist Ross Lambie said on March 4 that businesses are finally feeling confident enough to invest again…
But the RBA's next move remains unclear. Governor Lowe speaks at an economic forum next week, and everyone's waiting to hear if he thinks the economy's running too hot.