Westpac
Report published August 28, 2026
Australian GDP Preview Q2 2026: Westpac Economic Research Bulletin
Source and citation context
- Issuer
- Westpac
- Report date
- August 28, 2026
- Analysis as of
- Not stated in source
Authors / editors: Pat Bustamante
Finvaulta summarizes Westpac's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
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Westpac forecasts Australian Q2 2026 real GDP to rise by 0.2% q/q (1.7% y/y), reflecting modest growth weighed down by net exports and lumpy business capex. Domestic demand remains resilient at 0.5% q/q (3.3% y/y), driven by consumer spending and dwelling construction.
Key Takeaways
- 1.Australia's Q2 2026 GDP is forecast to expand by 0.2% q/q and 1.7% y/y, remaining in the slow lane but showing underlying resilience.
- 2.Domestic demand remains solid at 0.5% q/q and 3.3% y/y, supported by household spending, dwelling investment, and public demand.
- 3.Net exports and inventory changes are expected to subtract 0.3 percentage points from Q2 real GDP growth due to high import content in data centre equipment and EVs.
Table of Contents
- Key points
- Real GDP Growth
- Growth in the slow lane
- Real GDP Growth by components
- Resilient demand, lumpy investment and volatile activity
- GDP makeup
- Productivity softens as the economy builds future capacity
- The detail
- Real GDP Growth Forecasts (%qtr)
- Corporate Directory
- Things you should know
- Disclaimer
Report data
Real GDP Growth Forecasts (%qtr)
| Metric | Estimate | Context |
|---|---|---|
| Q2 2026 Real GDP Growth (q/q) | 0.2% | Westpac forecast post partial indicators |
| Q2 2026 Real GDP Growth (y/y) | 1.7% | Westpac forecast year-ended GDP growth |
| Domestic Demand Growth (q/q) | 0.5% | Expected growth in domestic demand |
| Domestic Demand Growth (y/y) | 3.3% | Expected year-ended growth in domestic demand |
| Labour Productivity Growth (q/q) | -0.2% | Estimated decline in labour productivity |
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Authors / Editors
Pat Bustamante
Reported Data Context
- Q2 2026 Real GDP Growth (q/q): 0.2 % (Q2 2026) · Source: Westpac Economics
- Q2 2026 Real GDP Growth (y/y): 1.7 % (Q2 2026) · Source: Westpac Economics
- Domestic Demand Growth (q/q): 0.5 % (Q2 2026) · Source: Westpac Economics
- Domestic Demand Growth (y/y): 3.3 % (Q2 2026) · Source: Westpac Economics
- Labour Productivity Growth (q/q): -0.2 % (Q2 2026) · Source: Westpac Economics
Themes
Australian Macroeconomic OutlookData Centre & Renewable Energy Investment BoomLabour Productivity and Unit Labour Costs
Regions
Asia PacificAustralia