What is the GDP growth rate of Australia in the second quarter?
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Synopsis
Australia's economy witnessed a robust growth rate of 0.6% in Q2 2025, reflecting a positive shift in the national economic landscape. As inflation rates also hit a 12-month high of 2.8%, economists are closely monitoring these trends and their implications for the future.
Key Takeaways
- Australia's GDP rose by 0.6% in Q2 2025.
- Annual inflation reached 2.8% in July 2025.
- Housing costs increased by 3.6%.
- Food and non-alcoholic beverages saw a 3.0% rise.
- Coffee, tea, and cocoa prices rose by 14.4%.
Canberra, Sep 3 (NationPress) The economic growth rate of Australia surged to 0.6 percent in the second quarter of 2025, as per the official data released on Wednesday.
According to the national accounts data from the Australian Bureau of Statistics (ABS), the gross domestic product (GDP) of Australia experienced a growth of 0.6 percent during the second quarter, which ran from the beginning of April to the end of June. This is an increase from 0.3 percent in the first quarter of 2025, as reported by Xinhua News Agency.
On a year-over-year basis, the GDP increased by 1.8 percent, a rise from 1.4 percent noted in the year ending March. Initially, the ABS had reported a first quarter GDP growth of 0.2 percent, later revising it to 0.3 percent on Wednesday.
Simultaneously, the annual inflation rate in Australia reached a 12-month peak of 2.8 percent in July, according to official statistics released on August 27.
The ABS indicated that the consumer price index (CPI) rose by 2.8 percent in the 12 months leading to July 2025, an increase from 1.9 percent observed in the year leading to June.
This represents the highest annual inflation rate in Australia since the 12-month period concluding in July 2024, when the CPI had increased by 3.5 percent.
According to the Australian Broadcasting Corporation, economists had predicted the CPI to rise by approximately 2.3 percent for the year ending in July.
The annual trimmed mean, which serves as a gauge of underlying inflation, also increased from 2.1 percent in June to 2.7 percent in July.
The ABS identified the primary contributors to CPI growth in the year leading to July as a 3.6 percent increase in housing costs, a 3.0 percent rise in food and non-alcoholic beverage prices, and a 6.5 percent increase in prices of alcohol and tobacco.
Prices for coffee, tea, and cocoa surged by 14.4 percent in July compared to the same month last year.
According to Michelle Marquardt, head of price statistics at the ABS, this increase is a result of supply challenges influenced by adverse weather conditions affecting key overseas coffee bean-producing regions.
The Reserve Bank of Australia, the nation’s central bank, projected in forecasts released earlier in August that headline inflation is likely to rise in the latter half of 2025 before stabilizing around 3 percent for most of 2026.
Point of View
I observe that Australia's economic growth is a significant indicator of resilience amidst global challenges. The rise in GDP and inflation figures requires our attention as they shape the economic outlook for both individuals and businesses in the country. Staying informed is crucial as we navigate this evolving landscape.
NationPress
03/09/2025
Frequently Asked Questions
What was Australia's GDP growth rate in Q2 2025?
Australia's GDP growth rate in the second quarter of 2025 was 0.6%, marking an improvement from the previous quarter.
How did inflation impact Australia in July 2025?
In July 2025, inflation in Australia hit a 12-month high of 2.8%, influenced by rising costs in housing, food, and beverages.
What are the main drivers of inflation in Australia?
The main drivers of inflation in Australia include rising housing costs, food prices, and specific increases in alcohol and tobacco prices.
