The economy has avoided a dreaded recession, rebounding sharply in the final three months of 2016 in an outcome Prime Minister Malcolm Turnbull says highlights the resilience of Australia.
The economy grew by 1.1 per cent during in the December quarter and that means Australia is still on course to complete more than 26 years of uninterrupted expansion by the end of this year, beating a record held by the Netherlands.
"This is a very good outcome for Australian families, for Australian business and for jobs," Mr Turnbull told parliament on Wednesday.
The December quarter result was a smart rebound from the shock 0.5 per cent contraction in the September quarter, the worst performance since the 2008-2009 global financial crisis.
It lifted the annual growth rate to a more respectable 2.4 per cent.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
Treasurer Scott Morrison was especially chipper about the national accounts result, and says it puts Australia at the "top of the pack".
"There is not a country I believe who would not want to swap places with me at the G20 when I go there in a few weeks time," Mr Morrison told reporters in Canberra.
He said the Australian economy was growing faster than every G7 nation and above the OECD average.
The latest growth figure confirmed the successful change that was taking place in the economy as it moved from the largest resources investment boom in Australia's history to broader-based growth.
"While this growth result is welcome, we must continue to remember that our growth cannot be taken for granted and is not being experienced by all Australians in all parts of the country in the same way," he said.
"As a government, we are extremely mindful of these differences."
Mr Morrison said a decline in wages growth during the December quarter was disappointing and was weighing heavily on the budget's revenue predictions.
Speaking prior to the release of the data, Treasury secretary John Fraser was more reserved, telling a Senate committee the fundamentals of the economy were "sound but finely balanced".
As last year's contraction showed, it remained sensitive to shocks.
Mr Fraser also said the economy had been generating enough jobs to maintain a stable unemployment rate.
"But there is still spare capacity in the labour market," he said.
Commonwealth Bank chief economist Michael Blythe said the Reserve Bank should be happy with the growth numbers.
"There does not appear to be any need for extra interest-rate assistance," he said.
