Australia’s economy expanded 0.4% qoq in Q3, below expectations for 0.7% and marking a softer outcome despite a 2.1% yoy rise from a year earlier. The headline result reflected steady domestic activity supported by private investment and household consumption. However, GDP per capita was flat, suggesting growth is tracking population gains rather than delivering broad-based improvement in living standards.
A key drag came from external accounts. Inventory rundown—used to support export volumes—subtracted meaningfully from growth, while net trade also weighed as imports rose faster than exports. The pattern highlights ongoing pressure on Australia’s trade balance even as domestic demand remains resilient.
Grace Kim, ABS head of National Accounts, described Q3 performance as “steady,” noting growth matched the post-pandemic quarterly average. Kim added that per capita GDP stagnation reflected population dynamics rather than outright weakness in activity, with the measure still 0.4% above its level a year earlier.
