GDP reading: Argentina’s GDP expanded 0.3% in seasonally adjusted quarter-on-quarter terms in Q3, following a 0.1% contraction in the previous...
Economic Growth in Australia
Up until the pandemic, Australia exhibited steady GDP growth, underpinned by strong commodity exports and robust domestic consumption. The economy was resilient against global economic shifts, maintaining growth even during commodity price downturns. Economic growth returned following a short-lived pandemic-induced recession in 2020. Still, it then trended down through 2024 to below pre-pandemic levels due to tight monetary policy plus a slow global recovery capping external demand.
In the year 2024, the economic growth in Australia was 1.04%, compared to 2.57% in 2014 and 2.06% in 2023. It averaged 2.31% over the last decade. For more GDP information, visit our dedicated page.
Australia GDP Chart
Note: This chart displays Economic Growth (GDP, annual variation in %) for Australia from 2014 to 2025.
Source: Macrobond.
Australia GDP Data
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Economic Growth (GDP, ann. var. %) | -2.0 | 5.4 | 4.2 | 2.1 | 1.0 |
| GDP (USD bn) | 1,365 | 1,658 | 1,728 | 1,747 | 1,799 |
| GDP (AUD bn) | 1,982 | 2,208 | 2,492 | 2,631 | 2,727 |
| Economic Growth (Nominal GDP, ann. var. %) | -1.1 | 11.4 | 12.8 | 5.6 | 3.6 |
Economic growth slows in the third quarter of 2025
GDP reading: Australia's GDP increased 0.4% on a seasonally adjusted quarter-on-quarter basis in Q3, following 0.7% growth in the previous quarter. Q3’s reading was below market expectations, but largely as the readings for Q1 and Q2 were revised up, creating a tougher base of comparison. Net trade and inventories detracted from growth, while domestic demand contributed positively.
Drivers: Relative to the previous period's data, figures in Q3 softened for private consumption (+0.5% in seasonally adjusted quarter-on-quarter terms vs +0.9% in Q2), government consumption (+0.8% vs +0.9% in Q2), exports of goods and services (+1.0% vs +2.3% in Q2) and imports of goods and services (+1.5% vs +2.3% in Q2). In contrast, the reading for fixed investment improved in Q3 (+3.0% vs -0.7% in Q2). Private investment was a particular strong point, buoyed by higher spending on data centers, housing, renewable energy and water infrastructure.
Panelist insight: On the reading, Nomura analysts said: “[The Q3 data] suggests that the combination of lower interest rates and some reduction in global uncertainty is boosting animal spirits, and that the hoped-for transition from public to private sector-driven growth is underway. Government spending did rise firmly in Q3 (adding 0.4pp to Q3 GDP), but we think growth will become less reliant on the public sector going forward. In addition, the main detraction from growth came from a depletion of inventories (subtracting a large 0.5pp in Q3). We think at least some of this was unanticipated, such that inventories will likely contribute to growth in Q4.”
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Australian GDP projections for the next ten years from a panel of 34 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable GDP forecast available for Australian GDP.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Australian GDP projections.
Want to get access to the full dataset of Australian GDP forecasts? Send an email to info@focus-economics.com.
Latest Global GDP News
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