Australia’s GDP had a remarkable rebound, soaring to increase by 0.6% in Q4 2024. This surge was made evident by data released Wednesday, which was particularly driven by a boom in public investment and private capital spending. The country’s stellar economic performance was propped up by robust domestic consumption and export growth.
The fourth quarter growth is a significant turnaround from other quarters this year. Real GDP increased modestly by 0.3% in the third quarter of 2024. It grew a paltry 0.2% in both Q1 and Q2. This positive trend over the course of the year resulted in a final calibration of GDP growth at a modest 1.3% for 2024.
Australia reached a strange milestone, recording its first per capita GDP increase in nearly two years. This achievement is a significant milestone in the country’s ongoing economic recovery. The increased domestic investment and strong demand for U.S. exports were both critical elements to this economic boom. That recent data has laid bare just how important those sectors have been in supporting Australia’s economic growth story.
Public investment and private spending, especially in the fourth quarter, played an outsized role in driving up GDP by 4.9 percent. This data showed that these sectors were the rocks of support to the economy, bolstering confidence in Australia’s economic miracle.