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AAP
AAP
Business
Poppy Johnston

GDP lifts 0.9pct in June quarter

Katy Gallagher has defended the RBA's conduct, saying governor Philip Lowe had a difficult role. (Mick Tsikas/AAP PHOTOS) (AAP)

The economy grew 0.9 per cent in the June quarter, increasing by 3.6 per cent for the year.

Elevated household spending and exports drove growth in the June quarter, according to the Australian Bureau of Statistics.

"This is the third consecutive quarter of economic growth, following a contraction in the September quarter 2021, which was impacted by the Delta outbreak," ABS head of national accounts Sean Crick said.

Household spending lifted 2.2 per cent for the quarter, adding 1.1 percentage points to GDP.

A lot of this spending was in travel, such as transport, hotels and food.

"Households increased spending on domestic and international travel as COVID restrictions further eased and international borders remained open," Mr Crick said.

"While spending on transport grew strongly, households were still only spending two thirds of what they did pre-pandemic."

The lift was in line with expectations, with Bloomberg's consensus anticipating a 0.9 per cent increase.

St George economists are forecasting growth rising by 1.1 per cent in the quarter, for an annual growth of 3.6 per cent.

CommSec economist Ryan Felsman and ANZ economists expected a quarterly gain of 0.8 per cent.

The ABS's national accounts figures follow the fifth consecutive official cash rate hike in a row on Tuesday.

Greens senator Nick McKim has been calling for RBA governor Philip Lowe to resign because the central bank boss said interest rates would not start rising until 2024.

Nationals senator Matt Canavan also wants new leadership at the RBA to restore trust in the institution.

However, Finance Minister Katy Gallagher defended the bank's conduct and said the RBA governor had a "very, very difficult role".

"We have got this increasing inflation, they're trying to manage that," Senator Gallagher said.

"And I think it's a real balance that they have to play between the decisions they take each month. I don't think it's easy."

She also pointed to the independent review of the central bank already under way.

"That's making sure that the RBA is fit for purpose," she said.

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