The Australian economy returned to positive territory in the final three months of 2016.

The economy expanded by 1.1% in the December Quarter, faster than expected by economists, after a 0.5% decline in the previous three months.

The annual rate lifted to 2.4% from 1.8%, according to the Australian Bureau of Statistics.

Federal Treasurer Scott Morrison says the results are a positive sign that the Australian economy is maintaining solid momentum in the nation’s 26th year of annual economic growth.

However, Morrison says Australia cannot be complacent if it is to retain its AAA credit rating.

The continuation of solid economic growth is one of many reasons why the Reserve Bank is unlikely to make further reductions to the official interest rate.