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business14h ago
Australia’s GDP growth is partly due to government spending. So why isn’t the Coalition complaining? | Greg Jericho
- Australia's GDP rose 2.6% in the December quarter of 2025, driven by inventories and spending.
- Public demand, including government spending and investment, contributed to December growth.
- State and local government spending and defence investment were notable drivers in December.
- Household disposable income has grown, aided by lower electricity costs and lower rates.
- Black Friday and Ashes-related spending boosted clothing, furniture, and hospitality sectors.
- Officials warn the growth may rely on temporary factors rather than sustained momentum.
- Analysts say sustained growth is needed beyond one-off boosts to manage inflation risk.
- Overall public demand remains lower than peak levels seen during the mining boom.
- Energy rebates eased essential electricity costs for households in the quarter.
- The piece suggests the opposition may navigate fiscal debates by reframing government spending.
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