Australia’s economic system grew 0.8% within the December quarter of 2025 in seasonally adjusted chain quantity phrases, in line with information from the Australian Bureau of Statistics (ABS).
The end result matched the tempo recorded within the June quarter and marked a transparent acceleration from the 0.5% enlargement within the September quarter. By means of the 12 months, the economic system expanded 2.6%, which marks a significant pickup from the sluggish 0.8% annual tempo recorded on the finish of 2023.
Key Takeaways from Australian GDP Report
- GDP rose 0.8% q/q within the December quarter 2025 in chain quantity phrases, up from 0.5% in Q3 2025. Annual progress got here in at 2.6%.
- Nominal GDP rose 1.8% for the quarter, with the GDP implicit value deflator up 1.0%, reflecting firmer home costs and a modest enchancment within the phrases of commerce (+0.4%).
- Non-public and public demand every contributed 0.3 share factors to quarterly GDP progress, with home last demand including 0.5 ppt in complete.
- Family consumption grew 0.3%, led by discretionary classes together with inns, cafes and eating places (+1.4%), furnishings and family tools (+2.1%), and recreation and tradition (+0.8%), boosted by Black Friday and Boxing Day promotional gross sales, main sporting occasions, and the varsity vacation interval.
- Family saving ratio rose to six.9% from 6.1% within the September quarter, as disposable earnings progress (+1.8%) outpaced nominal spending progress (+1.1%).
- 17 out of 19 industries recorded optimistic gross worth added progress within the quarter, with Mining (+2.6%) and Agriculture (+2.5%) main the products sector.
- Internet commerce detracted 0.1 share factors from progress, as a 1.8% rise in imports outpaced a 1.4% rise in exports.
The December quarter benefited from a confluence of things: a powerful agricultural harvest, elevated iron ore demand from China, a surge in home tourism tied to main sporting occasions and concert events, and a chronic retail promotional interval that prolonged from Black Friday nicely into Boxing Day.
Mining specifically rebounded from climate and upkeep disruptions within the prior quarter, with iron ore and coal manufacturing each selecting up.
Hyperlink to official ABS Australian GDP (This autumn 2025)
Domestically, the family image was extra nuanced. Whereas spending grew at a modest 0.3% tempo, the sharp rise within the saving ratio to six.9% indicators that households are rebuilding monetary buffers quite than absolutely deploying earnings good points.
Development remained the one smooth spot amongst main sectors, contracting 0.5% within the quarter as web site preparation and heavy civil engineering exercise pulled again.
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Market Reactions
Australian Greenback vs. Main Currencies: 5-min
Overlay of AUD vs. Main Currencies Chart Quicker with TradingView
The Australian greenback, which had already been grinding decrease main as much as the GDP launch, prolonged its slide even after the precise outcomes got here in higher than anticipated.
AUD/JPY bore the brunt of the promoting, declining roughly 0.55–0.65% from pre-release ranges and persevering with to float decrease all through the session, at one level approaching a 0.65% loss. The Aussie noticed extra modest declines in opposition to GBP and CAD of round 0.20–0.30% in what gave the impression to be a “purchase the rumor, promote the information” response.
The Australian foreign money continued to commerce under post-GDP ranges because the Asian session progressed, shrugging off largely higher than anticipated Chinese language PMI information as risk-off flows from Center East tensions remained broadly in play.
