RTTNews reports that according to the report from the Australian Bureau of Statistics, Australia's gross domestic product gained a seasonally adjusted 3.1 percent on quarter in the fourth quarter of 2020. That beat forecasts for an increase of 2.5 percent following the upwardly revised 3.4 percent gain in the previous three months (originally 3.3 percent).

On a yearly basis, GDP was down 1.1 percent - again exceeding expectations for a decline of 1.8 percent after sinking 3.8 percent in the three months prior.

Capital expenditure was up 3.6 percent on quarter after slipping 0.1 percent in Q3. The GDP deflator gained 1.1 percent on quarter, accelerating from 0.6 percent in the previous quarter.

Domestic final demand contributed 3.2 percentage points to GDP growth. Household final consumption expenditure contributed 2.3 percentage points as constraints on households and businesses continued to lift. Private investment contributed a further 0.7 percentage points to growth.

Spending by households rose 4.3 percent this quarter but remained 2.7 percent down through the year.

The household saving to income ratio declined to 12.0 percent from 18.7 percent last quarter, remaining at elevated levels. Falls in gross disposable income and increases in household consumption both contributed to the decline in saving.

Private investment rose 3.9 percent for the quarter. Both housing and business investment increased, supported by government initiatives and improvements in conditions.