The Australian Bureau of Statistics (ABS) today reported that Australia’s gross domestic product (GDP) increased by 3.4% in the fourth quarter, boosted by the government’s lifting of the stringent COVID-19 restrictions.
Economists had previously forecast Australian GDP to grow 3.5% in the fourth quarter, after contracting 1.9% in the third quarter, while full-year 2021 GDP grew 4.2%.
GDP growth in the 4th quarter was mainly driven by household spending. This was due to the recovery in consumer demand in conjunction with the Christmas season, which boosted the growth rate by 3.2%.
“Consumer spending drove growth […] led by the regions emerging from the lockdowns. The surge in consumption was in part aided by a drawing down of savings, but the savings rate still remains elevated at 13.6%, so there is scope for further consumption, which will boost growth in coming quarters.”Sean Langcake BIS Oxford Economics