Australia is celebrating 21 years of continuous economic expansion after a new report showed annual growth is well above its long-term trend.
The national accounts released on Wednesday showed the economy grew by 0.6 per cent in the June quarter, which was slower than the robust 1.4 per cent rate in the previous three months.
But annual growth at a seasonally adjusted 3.7 per cent was comfortably above a long-term trend of 3.25 per cent.
"Today's national accounts reaffirm Australia's position as one of the strongest economies in the world, and shines a light on our ongoing resilience in the face of significant international headwinds," Treasurer Wayne Swan said in a statement.
He said a "stunning" 21 consecutive years of economic growth had not been matched by any other advanced economy.
While the quarterly growth outcome was slightly below what economists had expected, the annual result was in line with the Reserve Bank of Australia's (RBA) forecast announced in August.
The central bank cited close-to-trend growth as a key factor for keeping the official cash rate unchanged for a third straight month at its board meeting on Tuesday, as well as an inflation rate consistent with its two to three per cent target.
But the RBA also noted that the international outlook was more subdued than it had been a few months ago.
Mr Swan later told reporters the federal budget was not immune to challenging conditions in global markets, where the prices of key bulk commodities were falling.
"While we have budgeted for a decline in our terms of trade, commodity spot prices have fallen by more than we anticipated in May," he said in Canberra.
"Obviously, there would be a further hit to the budget bottom line if these lower prices were sustained.
"That will make our budget task harder."
But the government was committed to delivering a budget surplus in 2012/13, and had a track record of creating savings, he said.
However, Mr Swan said he was encouraged the latest report showed economic growth was broad-based.
There were positive contributions from consumption, business investment, public final demand, and net exports - exports minus imports - which made their largest input in three years.
"That means we haven't got all of our eggs in the one basket," Mr Swan said.
