02.09.202504:13:48UTC+00Australia Government Spending Unchanged in Q2

In the June quarter of 2025, government expenditure in Australia remained largely unchanged following a tepid start to the year, offering no impact on the country's overall economic growth, as reported on Tuesday. The total public demand recorded was nearly stable at A$185.0 billion, a slight increase from A$184.9 billion in the March quarter, according to the Australian Bureau of Statistics. Operational spending experienced a 1.0% increase quarter-on-quarter, reaching an inflation-adjusted A$150.2 billion from A$148.7 billion in the previous quarter. Nevertheless, this increase was counterbalanced by a considerable 3.9% decrease in government and public enterprise investment in fixed assets, which declined to A$34.8 billion. This contraction is anticipated to reduce GDP growth by 0.2 percentage points for the June quarter. Overall, the ABS concluded that public expenditure did not contribute to GDP growth in the second quarter.