Southeast Asia Information Port (www.dnyxxg.com) – The Australian Bureau of Statistics (ABS) released a statement on March 3rd, stating that, after seasonal adjustments and using a chain-linked method, Australia's GDP grew by 0.4% quarter-on-quarter and 2.1% year-on-year in the third quarter of 2025.
This quarter-on-quarter increase was lower than the market's previous expectation of 0.7%. Grace Kim, head of the ABS's National Accounts Department, stated that economic growth was stable in the third quarter, with per capita GDP growth remaining flat compared to the second quarter, but 0.4% higher than the same period last year. Data shows that Australia's economic growth in the third quarter was mainly driven by domestic final demand, with private investment and household consumption playing a leading role, growing by 2.9% and 0.5% quarter-on-quarter, respectively.
The statement also noted that net trade dragged down GDP growth by 0.1 percentage point in the third quarter, as a 1% increase in exports was offset by a 1.5% increase in imports. Furthermore, the Australian household savings rate rose to 6.4% in the third quarter from 6% in the second quarter, and total household disposable income increased by 1.7%.
The Australian Broadcasting Corporation (ABC) cited economists who analyzed that the lower-than-expected quarter-on-quarter growth was mainly due to weak net trade and declining inventories, and does not necessarily indicate a weakening economy. For the Reserve Bank of Australia (RBA), a rate cut in the short term is unlikely, but the possibility of a rate hike to curb inflation cannot be ruled out.
Australian Treasurer Chalmers issued a statement that day, saying that the latest data shows that the country's economy and private sector activity are picking up, driven by strong private investment growth. (End)
