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Australia GDP Grows 2.1% in Q2, Beating Forecast

9/2/2026

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Story summary
  • Australia’s economy grew 2.1% year-on-year in Q2 2026, beating Reuters’ 1.8% forecast.
  • Private demand and mining exports drove growth, with household spending up 0.4%.
  • Higher fuel prices from the Middle East conflict prompted households to cut fuel use and travel.
  • The stronger GDP lets the Reserve Bank keep tightening as July inflation rose to 3.5% above the 3.3% forecast.