Growth in Q3 was considerably stronger than anticipated at 1.1 per cent q-o-q (not annualised), with upside surprises in consumption, government spending and net trade. Private investment growth was weaker than anticipated but IT-related investment was still up by 14 per cent y-o-y and is contributing significantly to overall GDP growth, Fitch Ratings said in a press release.
Buoyant equity markets are supporting consumer spending which grew by 0.9 per cent in Q3. Consumption has held up surprisingly well despite a slowdown in real household income growth through 2025 as employment growth has weakened. The saving ratio fell from 5.1 per cent of income in January 2025 to 4.0 per cent in September.
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