GDP reading: Australia’s GDP increased 0.8% on a seasonally adjusted quarter-on-quarter basis in Q4, following 0.5% growth 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 rises in the fourth quarter of 2025
GDP reading: Australia's GDP increased 0.8% on a seasonally adjusted quarter-on-quarter basis in Q4, following 0.5% growth in the previous quarter and above market expectations. That said, the acceleration was solely due to an inventory build-up, as key GDP components lost steam.
Drivers: Compared with the prior period's data, readings in Q4 softened for private consumption (+0.3% vs +0.5% in Q3), government consumption (+0.9% vs +1.1% in Q3), fixed investment (+0.7% vs +3.2% in Q3) and imports of goods and services (+1.8% vs +2.0% in Q3). Finally, the variation in exports of goods and services was the same as in the prior quarter (+1.4% in Q4 and Q3).
Panelist insight: On the outlook, EIU analysts said: “The fourth-quarter data support our existing forecast for growth in 2026, which is broadly a story of strengthening private-sector demand that is generating further economic growth similar to that seen in October-December 2025. We believe that the RBA will keep its policy interest rate on hold in March.”
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 37 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.
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