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Breaking: Australian Gross Domestic Product rises 0.8% QoQ in Q4 vs. 0.6% expected

Australia’s Gross Domestic Product (GDP) rose 0.8% QoQ in the fourth quarter (Q4) of 2025 compared with the 0.4% growth in the third quarter, the Australian Bureau of Statistics (ABS) showed on Wednesday. This reading came in stronger than the expectations of 0.6% expansion.

The annual fourth-quarter GDP grew by 2.6%, compared with the 2.1% growth in Q3, while above the consensus of a 2.2% increase.

Additional takeaways from the Australian GDP data

In nominal terms, GDP rose 1.8%.

The terms of trade rose 0.4%.

Household saving to income ratio rose to 6.9% from 6.1%. 

Market reaction to Australia’s GDP data

The upbeat Australia GDP report fails to boost the Australian Dollar (AUD). The AUD/USD pair is trading at 0.7021, losing 0.31% on the day.

GDP FAQs

A country’s Gross Domestic Product (GDP) measures the rate of growth of its economy over a given period of time, usually a quarter. The most reliable figures are those that compare GDP to the previous quarter e.g Q2 of 2023 vs Q1 of 2023, or to the same period in the previous year, e.g Q2 of 2023 vs Q2 of 2022. Annualized quarterly GDP figures extrapolate the growth rate of the quarter as if it were constant for the rest of the year. These can be misleading, however, if temporary shocks impact growth in one quarter but are unlikely to last all year – such as happened in the first quarter of 2020 at the outbreak of the covid pandemic, when growth plummeted.

A higher GDP result is generally positive for a nation’s currency as it reflects a growing economy, which is more likely to produce goods and services that can be exported, as well as attracting higher foreign investment. By the same token, when GDP falls it is usually negative for the currency. When an economy grows people tend to spend more, which leads to inflation. The country’s central bank then has to put up interest rates to combat the inflation with the side effect of attracting more capital inflows from global investors, thus helping the local currency appreciate.

When an economy grows and GDP is rising, people tend to spend more which leads to inflation. The country’s central bank then has to put up interest rates to combat the inflation. Higher interest rates are negative for Gold because they increase the opportunity-cost of holding Gold versus placing the money in a cash deposit account. Therefore, a higher GDP growth rate is usually a bearish factor for Gold price.

Author

Lallalit Srijandorn

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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