Australia’s economy remains on public sector life support

Monday 8 September 2025

Last week, the Australian Bureau of Statistics (ABS) issued the national accounts for Q2 2025, revealing stronger-than-expected growth.

Analysts predicted a 0.4% increase in headline GDP, while the RBA expected 0.5% growth. However, a 0.6% increase was observed, driven by household spending.

Household spending per capita increased by 0.5% in the second quarter, the highest increase in three years. For the first time in two years, per-person spending increased (+0.3%) year on year.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.