The economy expanded by a better than expected 0.5 per cent in the December quarter, with annual growth accelerating to 2.2 per cent from 2.0 per cent in September.
The quarterly increase narrowly beat market consensus of 0.4 per cent growth.
However, Australian Bureau of Statistics chief economist Bruce Hockman said the rate of growth remained below the long-run average.
Domestic demand remained subdued in the three months to December 2019, at 0.1 per cent growth.
A pick-up in household discretionary spending and continued increases in the provision of government services was dampened by falls in dwelling and private business investment.
The Australian dollar edged slightly higher on the release of the data and was worth 65.98 US cents at 1133 AEDT.
-more to come