Despite all its challenges, the Australian economy expanded 3.4% in Q4 2021, shifting from a 1.9% fall in Q3.
This was the strongest pace of growth since Q3 2020, mainly boosted by a sharp rebound in household spending as the economy emerged from COVID-19 lockdowns.
Household consumption bounced back strongly, buoyed by spending on both goods and services with recreation and culture, cafes & restaurants and clothing experiencing strong rises.
Meantime, government spending growth eased sharply (0.1% vs 3.8%); while private investment fell for 1st time in 6 quarters (-1.4% vs 0.7%), amid shortages of labor and construction materials.
Also, net external demand contributed negatively, with exports falling 1.5%, due to mining commodities and travel services; while imports dropped 0.9%, driven by consumption and capital goods.
On a yearly basis, the economy grew 4.2%, after a 3.9% rise in Q3 and above consensus of 3.7%.