Australia’s economy is growing faster than expected. New GDP figures show the economy expanded by 2.6 per cent through 2025 — its fastest pace in almost three years — helped by government spending, strong business investment including data centres, and resilient consumer demand.

Belinda Allen, Head of Australian Economics at Commonwealth Bank, joins Sean Aylmer to unpack the numbers, and she explains why the strong economy, the inflation challenge, and international uncertainty have put the RBA in a pickle.