Australia’s economy accelerated at the end of 2025, with new figures showing stronger growth across most sectors.
Data released by the Australian Bureau of Statistics shows gross domestic product increased by 0.8% in the December quarter, lifting annual growth to 2.6% for the year.
That marks an increase from the 2.1% annual growth recorded in the year to September.
The ABS said economic activity expanded across a wide range of industries, reflecting broad-based growth in the economy.
Both public and private demand contributed equally to the increase in output, each adding 0.3 percentage points to growth during the quarter.
The stronger economic performance comes amid ongoing political debate about government spending and the role of public demand in driving growth.
However, economists and policymakers have warned the pace of expansion may add pressure to inflation if the economy grows faster than its productive capacity.
The Reserve Bank of Australia estimates the economy’s sustainable growth rate is around 2% annually.
RBA governor Michele Bullock said earlier this week that the possibility of an interest rate rise remains “live” ahead of the central bank’s next meeting later this month.
Treasurer Jim Chalmers welcomed the data, saying the figures provide a strong base for the economy despite global economic uncertainty and rising geopolitical tensions in the Middle East.
