Treasurer Joe Hockey has lashed out at the "foolish people" talking about Australia heading into the dark clouds of recession.
He described the latest national accounts as a "terrific set of numbers", showing the economy expanded at a stronger than expected 0.9 per cent in the first three months of this year.
"They have proven that there are some clowns out there talking about recession," Mr Hockey told reporters in Canberra on Wednesday.
He said it showed Australia is one of the fastest growing economies in the developed world and was consistent with his budget forecast for 2.5 per cent growth for this financial year.
"This growth is broad-based. Growth in exports, household spending, services and new dwellings confirms that the government's economic plan is working," he said.
This growth occurred before the May budget, which has been designed to stimulate the small business sector through tax breaks.
David Lane, from business consultants Pitcher Partners, acknowledged the government efforts for small business but said broader capital expenditure needs to increase in order to generate stronger growth.
"Significant investment in infrastructure, construction and new growth opportunities need to be made by big business and government," he told AAP.
Shadow treasurer Chris Bowen welcomed the growth result but said the significant contribution to growth from exports is not something the government can claim credit for.
"Before the 2014 budget, growth was a lot closer to three per cent than it is now," he told reporters in Canberra.
Annual economic growth slipped further to 2.3 per cent in the year to March, down from 2.5 per cent in the 12 months to December, and is well below its long-term trend rate of above three per cent, generally thought required to keep the unemployment rate steady.
ANZ economist Felicity Emmett said the growth figures were broadly consistent with the Reserve Bank's latest economic forecasts published in May.
The central bank left the cash rate unchanged at a record low of two per cent at its board meeting on Tuesday, saying it will carefully monitor data in coming months.
"We expect that rates will be on hold for some time, given that growth looks set to remain below trend and the unemployment rate is expected to remain high," Ms Emmett said.
Labour force figures for May are due next week.
ACTU secretary Dave Oliver said the unemployment rate has been at or above six per cent for almost 12 months.
"Today's economic growth figures show there is little prospect of new jobs being created," he said in a statement.
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