- Westpac IQ
- Economics
- Australian GDP Q2: Stalling Recovery
Australian GDP Q2: Stalling Recovery
By Pat Bustamante
Senior Economist, Westpac
16:36 August 29 2025
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The June quarter National Accounts will show Australia’s recovery stalled over the first six months of 2025, with the economy expanding just 1.3%yr in six-month annualised terms - a step down from the 1.8%yr pace recorded in the second half of 2024 and well below the RBA’s updated trend estimate of +2.0%yr.
Read full report 'Australian GDP Q2 preview: Stalling Recovery'
Australia’s recovery stalled over the first six months of 2025, with the economy expected to have grown 0.4%qtr in Q2 and just 1.3%yr in six-month annualised terms – way below the RBA’s updated trend estimate of +2.0%yr.
The extent of the pull back in public demand has surprised on the downside, while it’s become clearer that it will take time for investment and construction activity to pick up. This increases the chances of a ‘shaky handover’, and buildup of unnecessary slack in the labour market, in the near term.
Productivity in the market (ex-mining) sector is expected to have grown 1.0%yr in Q2. As well as moderating growth in the sector’s unit labour costs to around 3.5%yr, this supports the view that whole-economy productivity growth will recover as the sector-specific factors in mining and the care economy wash out.
Click on above PDF link for full report
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