Australia recorded a 3.1% increase in Gross Domestic Product in the December quarter, one of the best results for the Australian economy in 45 years and significantly outperforming the general consensus of 2.5% growth in the quarter. The surprise strong positive growth has resulted in the economy recording two consecutive quarters of growth above 3% for the first time in over 60 years. The performance of the past two quarters is a strong sign of solid economic recovery in the wake of the COVID-19 pandemic, with the continued easing of COVID-19 restrictions across the country allowing for businesses to begin to return to more normal trading conditions. The ongoing injection of economic stimulus in the form of JobKeeper and JobSeeker has also assisted in supporting the economy through challenging times, with household consumption growing 7.9% in the September quarter, and 4.3% in the December quarter.
Numerous sectors have grown strongly over the past two quarters. Accommodation and Food Services have bounced back, with industry value added growing over 50% over the 6-month period to December. Other notable expansions include Agriculture and Arts and Recreation, which had industry value added grow 26.5% and 24.1% over the same period respectively. Despite two strong quarters of economic growth, the economy contracted 1.1% over the 2020 calendar year, with the declines earlier in 2020 too high a mountain to climb for even the record-breaking performance of the past two quarters and signifying that Australia continues to remain below where it was prior to the pandemic.
