Australia’s Economy Speeds Up, but Government Spending Still Doing the Heavy Lifting

Annual growth reaches 2.6 percent as government spending and investment drive activity.

Treasurer Jim Chalmers is seen during a press conference at The Paddo Tavern in Brisbane, Australia, on Oct. 14, 2025. AAP Image/Darren England

Australia’s economy expanded more quickly at the end of 2025, according to new national accounts released by the Australian Bureau of Statistics, though the figures also highlight the continued role of government spending in driving growth.

Gross domestic product (GDP) rose 0.8 percent in the December quarter, lifting annual growth to 2.6 percent, up from 2.1 percent in the year to September.