Australia’s GDP rebound masks deeper economic problem

Friday 5 September 2025

The Australian Bureau of Statistics (ABS) on Wednesday released the national accounts for Q2 2025, which revealed stronger-than-expected growth.

Analysts had tipped a 0.4% rise in headline GDP, and the RBA had forecast 0.5% growth. However, a 0.6% rise was recorded, led by household spending.

Household spending per capita rose by 0.5% in Q2, the strongest rise in three years. Over the year, per-person spending growth was in positive territory (+0.3%) for the first time in two years.

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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.