FEAR & GREED | Business News Economy picks up; Future Fund boss under fire for EA trips; shoppers beat Xmas rush
Dec 3, 2025
Economic growth is on the rise, but hopes for interest rate cuts are fading. The Future Fund's CEO faces backlash for extravagant travel expenses for his assistant. Christmas shoppers are starting early, despite a decrease in foot traffic. The property market shows intriguing contradictions this year as prices climb even with declining interest rates. Additionally, the search for missing Flight MH370 is set to resume, reigniting interest in this long-standing mystery.
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Growth Strengthens, Cuts Off The Table
- Australia's economy grew at a 2.1% annualised pace with 0.4% quarterly GDP driven by business, consumers and government.
- Rising inflation pressures and stronger activity make further Reserve Bank rate cuts unlikely in the near term.
Inventory Drawdown Masks True Demand
- Inventories falling subtracted 0.5 percentage points from quarterly GDP, a quirk of the national accounts.
- Selling stock reduces company assets so it counts as a drag on GDP despite appearing like higher sales.
Private Sector Taking Over Growth
- Private sector activity appears to be picking up and beginning to replace public spending as the main growth driver.
- That shift matters because private-led growth tends to boost supply capacity and productivity more than public spending.