The December quarter national accounts released on Wednesday showed an expansion of 0.5 per cent, following a 0.6 per cent lift in the three months to September.
Annual growth rose to 2.7 per cent, according to the Australian Bureau of Statistics.
ABS head of national accounts Katherine Keenan said final consumption and net trade were the major drivers of GDP growth.
"The 0.4 per cent rise in total consumption and 1.1 per cent rise in exports were the primary contributors to GDP growth in the December quarter," she said.
"Continued growth in household and government spending drove the rise in consumption, while increased exports of travel services and continued overseas demand for coal and mineral ores drove exports."
The headline figure came in below expectations, with analysts anticipating a 0.8 per cent expansion in the economy over the quarter.
Gross domestic product is the main measure of activity in the economy and includes consumer spending, government spending, business spending and investment and the difference between exports and imports.
The backward-looking indicator of growth gives the Reserve Bank of Australia more information about how the economy is tracking as it continues lifting interest rates to take demand out of the economy.
The RBA has been lifting interest rates since May in a bid to slow down inflation and is expected to hike the cash rate another 25 basis points when it meets next Tuesday.
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