Australia's economy shrank in 2020 after suffering its first recession in nearly 30 years.
Economic activity declined by 1.1 per cent over the calendar year, new Bureau of Statistics data show.
However, gross domestic product (GDP) grew strongly in the last six months of the year, by 3.4 per cent in the September quarter, and by 3.1 per cent in the December quarter.
The strength of the resurgence in activity took economists by surprise, and it was the first time in the more than 60-year history of the National Accounts that GDP has grown by more than 3 per cent in two consecutive quarters.
It means the economy has rebounded sharply from its record deterioration in the middle of last year, when the June quarter data recorded a historic decline of 7 per cent after the first lockdowns.
Government payments boost GDP
The ABS data shows the federal government's JobKeeper and boosting cash flow for employers schemes provided significant support to the economy.
JobKeeper payments accounted for $11.9 billion in the December quarter, down from $35.8 billion in the September quarter.
Boosting cash flow for employers contributed $6.7 billion, down from $13.5 billion in the September quarter.
Spending by households rose by 4.3 per cent in the December quarter, as Victorians came out of lockdown and people around the country started going out more to buy goods and services.
Spending on services jumped 5.2 per cent in the quarter as recreation and culture, hotels, cafes and restaurants and health all continued to rebound.
Purchase of vehicles rose a record 31.8 per cent, reflecting higher household disposable income and shifting spending patterns, with continued limitations on other expenditure items such as overseas travel.