Australian Economy Defies global Downturn with Record Home Loans, Rising EV Sales & Discretionary Spending
Canberra – Australia’s economy demonstrated surprising resilience in the June quarter, bucking global trends with record-high home loans, increased electric vehicle adoption, and a surge in discretionary spending, according to recent data releases. While much of the developed world grapples with economic headwinds, Australia is experiencing growth in key sectors, signaling a divergence from prevailing international conditions.
The Australian economy’s performance stands in stark contrast to struggles elsewhere, particularly in the United States, and suggests effective economic management is yielding positive results for Australian households. This positive trajectory is occurring amidst a global landscape of economic uncertainty, raising questions about Australia’s ability to maintain this momentum and offering a potential model for navigating challenging economic times.
Key Economic Indicators – June Quarter 2025
1. Economic Growth: The Australian economy grew 0.6% in the June quarter, driven by increased household spending.
2. Vehicle Sales: Australians purchased more hybrid and electric vehicles during the June quarter, alongside a typical seasonal increase in ute sales. Despite this growth, Australia still trails many developed nations in EV adoption rates.
3. Housing Market: The average value of new home loans reached a record $678,011, a 7.5% increase year-on-year. Australia is one of onyl six OECD members – alongside France, hungary, Iceland, Slovakia, and Spain – experiencing strong growth in both housing permits and construction.
4.Consumer Spending: Household spending rose 0.9% with discretionary spending climbing 1.4% due to increased activity over the Easter and ANZAC day long weekends. This includes spending on hotels, restaurants, and recreation.
5. Luxury Spending: The increase in discretionary spending indicates a robust consumer environment, challenging previous narratives of a cost of living crisis.
Sources: https://www.abs.gov.au/media-centre/media-releases/investment-loans-drive-growth-june-quarter, https://tradingeconomics.com/country-list/building-permits, https://www.abs.gov.au/media-centre/media-releases/australian-economy-grew-06-cent-june-quarter, https://thedriven.io/2025/09/03/australian-electric-vehicle-sales-by-month-and-by-model-in-2025-2/
