Australia’s economic growth rises 3.4 % in June quarter, exceeding expectations

Australia’s Q2 Growth Domestic Product (GPD) report released on Wednesday shows the Australian economy has grown 0.9% in the June Quarter, up 3.4% from last year.


The real GDP came in at 0.90% exceeding expectations of 0.70%, according to the ABS. The jump shows positve growth for the Australian economy – the best in six years.

Chief Economist for the ABS, Bruce Hockman, said 'Growth in domestic demand accounts for over half the growth in GDP, and reflected strength in household expenditure.' In the March quarter, the real GDP grew by 1%, the fastest increase since 2011.

According to the ABS, domestic demand increased 0.6 % for the June quarter, driven by a 0.7 % growth in household consumption, with increased expenditure on both discretionary and non-discretionary goods and services.


  • General government final consumption expenditure went up 1.0 %, while public investment remained high.
  • Investment in new dwellings increased 3.6 % with strength observed in Victoria and South Australia, reflecting a 1.9% boost for the construction industry
  • Compensation of employees (COE) grew 0.7 % for the June quarter, due to rises in the number of wage and salary earners and wage rates.


  • Household disposable income and strength in household consumption dropped 1.0% in the household saving ratio - its lowest rate since December 2007.

The Australian dollar rose slightly upon the news, rising above 0.7215 from 0.7190.

The numbers show Australia’s economy is growing rapidly, with the jump in the June quartre marking the 27th year without recession.

Economists say they're impressed with the result, particularly with the pace of Australia’s changing political leadership.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Find articles by writer

All trading involves risk and losses can exceed deposits. Trading CFDs may not be suitable for everyone so please ensure that you fully understand the risks involved. All trading involves risk and losses can exceed deposits.