Australia's economy grew 0.8% in the December quarter of 2025, reaching 2.6% annual growth - the strongest pace since March 2023. The Australian Bureau of Statistics attributes the growth to construction sector demand, consumer spending during end-of-year sales, and major events including the Ashes cricket series and Oasis concerts. Treasurer Jim Chalmers and opposition shadow treasurer Tim Wilson debate government spending levels while acknowledging risks from the Middle East conflict, as Foreign Minister Penny Wong coordinates the return of stranded Australians through consular crisis response teams.

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