Australia GDP grew 3.1% qoq in Q4, above expectation of 2.5% qoq. Growth slowed slightly from Q3’s 3.4% qoq. Over the year, GDP dropped -1.1% yoy. Terms of trade rose 4.7% qoq off the back of higher export prices, particularly for iron ore. Terms of trade contributed to a 4.2% increase in nominal GDP, strongest rise since Q3 1983.
Head of National Accounts at the ABS, Michael Smedes said: “Despite the two consecutive quarters of strong growth, economic activity remained 1.1 per cent lower than recorded in the 2019 December quarter.” This is the first time in the over sixty year history of the National Accounts that GDP has grown by more than 3.0 per cent in two consecutive quarters.
