Australia's economy in the third quarter grew at the slowest annual pace since the pandemic, disappointing hopes for a rebound as government spending did all of the heavy lifting and consumers remained cautious.

After growing at just 0.2% QoQ in the previous three quarters, Australia’s GDP growth in 3Q24 rose to 0.3%. However, this was lower than the market had been hoping for, and the breakdown of growth is also disappointing

Australia’s weaker-than-expected national accounts data for the September quarter have reinforced market expectations the Reserve Bank will be cutting interest rates in 2025.