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flag Australia’s economy grew in late 2025, driven by spending and strong demand, prompting rate hike talks.

flag Australia’s economy is projected to grow strongly in the December 2025 quarter, with private demand and public spending driving a rebound, according to major banks. flag Government spending rose 0.9%, contributing to GDP growth, while inventory rebuilding and resilient consumer activity fueled the expansion. flag Annual GDP growth is forecast between 2.3% and 2.7%, with inflationary pressures persisting due to rising labor costs and strong demand. flag The Reserve Bank of Australia faces pressure to consider further rate hikes, as the economy grows above its potential, with the March 16–17 policy meeting expected to address tightening options.

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