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Australia economy picks up speed in Q4, stretches supply

BY Reuters | ECONOMIC | 03/03/26 07:40 PM EST

SYDNEY, March 4 (Reuters) - Australia's economy grew at the fastest annual pace in almost three years in the December quarter, data showed on Wednesday, a pick up that reignited inflation and required a hike in interest rates to tamp things down.

Data from the Australian Bureau of Statistics showed real gross domestic product (GDP) rose 0.8% in the fourth quarter, up from 0.5% the previous quarter. Analysts this week had upgraded their forecasts to around 1.0%.

Annual growth accelerated to 2.6%, the fastest pace since early 2023 when post-pandemic stimulus was still being felt. The Reserve Bank of Australia judges the economy cannot grow above 2.0% without generating inflation, which led it to raise rates last month. (Reporting by Wayne Cole Editing by Shri Navaratnam)

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