Australian GDP growth was 1.1% in Q1 2014, well ahead of expectations of a 0.9% rise.
The annual rate was 3.5% seasonally adjusted, significantly above the 3.2% expected in a Bloomberg survey of economists.
The Australian dollar is rising at the news, and was trading at 0.9283 against the dollar moments ago.
A big rise in net exports, up 1.4%, was the main contributor to the expansion.
The big question is now whether the momentum was sustained through into the second quarter, where there have been some risks emerging for the recovery.