Australia's GDP is forecasted to grow 0.6% quarter-over-quarter, with upside risk, in the fourth quarter of 2024, according to a Tuesday report by ANZ Research.

GDP(E), representing the total value of expenditure by consumers, businesses, and governments on final goods and services, is expected to rise 0.7% quarter-on-quarter.

Household consumption is expected to accelerate to 0.5% over the period. Dwelling investment growth of 0.7% quarter-on-quarter also supports the expenditure forecast, while a fall of around 0.7% in business investment will drag on growth, the report said.

GDP(P), representing total value added from goods and services produced, is expected to rise 0.6% quarter-on-quarter, with contributions to growth from transport, wholesale, retail, construction, health care, public administration, and education.

Real GDP(I), representing total income generated by employees and businesses, is also expected to increase 0.6% quarter-on-quarter.

An increase of 0.3% month-on-month in retail trade in January, provides further evidence for consumer recovery, with six-month annualized growth rising to 4.7% in January from 4.2% in December. The current account deficit narrowed by AU$1.3 billion to AU$12.5 billion in the fourth quarter. Both metrics were in line with market expectations, according to the report.