Australia’s economy has turned the corner, growing a modest 0.6% in the December 2024 quarter, driven by a jump in household spending and stronger exports, according to Australian Bureau of Statistics (ABS) data.

Annual GDP also rose, growing 1.3% in 2024, while GDP per capita for the December quarter edged up 0.1% — putting an end to seven consecutive quarters of falls.

The positive data has lifted the country out of its “per-capita recession,” marking the highest quarterly growth since December 2022.

“Modest growth was seen broadly across the economy this quarter,” Katherine Keenan, head of national accounts at ABS, said in a press release on Wednesday.

“Household discretionary spending rose as people made the most of retail sales events and increased spending on hospitality as they enjoyed music and sporting events,” Keenan added.

However, Australians also saved more during the December quarter, with the household savings ratio rising 3.8%, up from 3.6% in the September quarter.

The rise in income received was boosted by higher earnings from employee compensation, household income from dwellings and interest received, ABS said.

“Growth is picking up in the Australian economy, and the Australian economy has turned a corner,” Federal Treasurer Jim Chalmers said during a press conference, according to local media reports.