Australia Dec Qtr GDP Up 2.6% y/y

By Sophia Rodrigues

The Australian economy grew 0.8% q/q in the December quarter, data published by the Australian Bureau of Statistics Wednesday showed. This lifted y/y growth to 2.6%, beating market expectations and exceeding the RBA's February 2.3% growth forecast.

Productivity was slightly higher than the RBA’s estimate of 0.7% y/y growth, and average earnings came in at 4.2%, slightly lower than the 4.4% forecast.
The main surprise in the GDP data was business investment, which rose 4.4% y/y after an upwardly revised 4.2% in the September quarter.