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Australia govt spending adds 0.3 percentage pts to GDP in Q4

Published 02/03/2021, 11:41 am
Updated 02/03/2021, 11:42 am
© Reuters.

SYDNEY, March 2 (Reuters) - Australian government spending rose solidly again in the December quarter, adding 0.3 percentage points to gross domestic product (GDP).

Spending on operational items increased 0.8% in the fourth quarter from the previous quarter to an inflation-adjusted A$104.62 billion ($81.30 billion), the Australian Bureau of Statistics reported on Tuesday.

Investment in fixed assets by the government and public enterprises rose 2.5% to A$26.22 billion.

The ABS said the 1.1% increase in total public sector demand was expected to contribute 0.3 percentage points to real GDP, data for which are due on Wednesday.

Public spending accounts usually for around 24% of GDP. Analysts forecast GDP rebounded by around 2.5% in the fourth quarter, on top of a surprisingly strong 3.3% jump the previous quarter. ($1 = 1.2868 Australian dollars)

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