Australia GDP Growth Rate

The Australian economy grew by 0.2% qoq in Q2 of 2024, holding steady for the third quarter while falling short of market forecasts of 0.3%. This was the 11th period of quarterly growth but remained at the softest pace in five quarters, largely helped by a further rise in government spending (1.4% vs 1.2% in Q1) following extended social benefits. Meanwhile, household spending, accounting for half of GDP, was lower after rising in the prior two quarters (-0.2% vs 0.6% in Q1), on reduced discretionary expenses, notably transport services. Fixed investment added no contribution as it fell for the third quarter (-0.1% vs -0.6% ). On the trade front, exports of goods and services rose 0.5% but imports fell 0.2%. Changes in inventories detracted 0.3 ppts from after a build-up in Q1. The household savings ratio stayed subdued at 0.6%. Yearly, the GDP advanced 1.0%, the lowest since Q4 of 2020. The economy expanded 1.5% in 2023-24, the weakest since 1991-92, excluding the COVID-19 pandemic.