ACT economy leads nation with 3.2 per cent growth in 2025-26

The Australian Capital Territory's economy grew by 3.2 per cent in 2025-26, according to the latest estimates from the ACT Treasury, outperforming the national average of 2.4 per cent and making the territory the fastest-growing economy of any Australian jurisdiction for the second consecutive year. The performance was driven by the combination of sustained Commonwealth public service employment, significant defence and national security investment in ACT-based agencies and infrastructure, and the growing private sector that has developed in the capital's professional services, hospitality, and technology sectors.

Chief Minister Andrew Barr attributed the strong performance to the diversification of the ACT economy beyond its historical dependence on Commonwealth employment, noting that the private sector now accounts for a larger share of ACT employment and output than at any previous point in the territory's economic history.

The technology sector has been a notable contributor, with the ACT's cybersecurity and govtech industries generating employment growth above the national technology sector average. Several Canberra-based technology companies have scaled from startup phase to significant commercial operations over the past three years, contributing to the employment diversification that the government has been seeking to achieve through its innovation policy investment.

Unemployment in the ACT remains at 3.1 per cent — the lowest of any Australian state or territory — reflecting both the strong economic activity and the relatively low participation of cyclically sensitive industries in the ACT's employment base. The construction and professional services sectors reported the highest employment growth rates over the year.

Forward indicators suggest sustained performance, with building approvals, business confidence surveys, and forward order data for professional services firms all pointing to continued above-average activity in the 2026-27 financial year.

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