Australia Q2 GDP Growth Surpasses Expectations

Australia's economy experienced a modest acceleration in growth during the second quarter of this year. According to data released by the Australian Bureau of Statistics, the country's GDP rose by 0.4% in the June quarter, exceeding economists' expectations of a 0.3% increase.

This marked an improvement from the revised 0.3% growth seen in the March quarter, but annual growth slowed to 2.1%, down from 2.5% in the previous quarter.

Household consumption was a key driver of growth, increasing by 0.4% despite subdued spending across most categories. However, vehicle purchases saw a notable boost as households continued to shift towards electric vehicles.

The Reserve Bank of Australia (RBA) is keeping a close eye on inflation and economic capacity, having already raised interest rates three times this year in an effort to tame high inflation.