Australia's GDP grows 0.6% in Q4 2024

GDP per capita grew by 0.1 per cent in the quarter following seven consecutive quarters of falls.

“Modest growth was seen broadly across the economy this quarter. Both public and private spending contributed to the growth, supported by a rise in exports of goods and services,” Katherine Keenan, ABS head of national accounts, said in a release from the Bureau.

Household spending was up by 0.4 per cent in Q4 2024 after a flat result in Q3.

Household discretionary spending rose as people made the most of retail sales events; private investment rose by 0.3 per cent in the quarter; and public investment rose by 1.8 per cent, Keenan said.

Growth in government spending moderated to 0.7 per cent in the quarter following larger rises in preceding quarters. Exports of goods was flat.

Nominal GDP rose by 1.6 per cent in the quarter, reflecting a 1-per cent rise in the GDP implicit price deflator.

The data shows private sector weakness has continued in spite of the uplift in headline GDP, Innes Willox, chief executive of the national employer association Ai Group said.

"Unfortunately, there is little to suggest that the poor business conditions facing many industries over the last year have turned a corner. Most indicators of private sector activity remain weak, and the economy's dependence on government spending has continued,” he noted in a release.

"Volatility for business is only increasing, hampering hopes for a long run recovery," Willox added.

ALCHEMPro News Desk (DS)