Australia has now notched up 100 quarters without a recession, nearly breaking the Netherlands' record for longest expansion at 103.

Australia's economy grew by 3.3 per cent over the year to June, matching economist forecasts and putting GDP growth slightly above average levels.

"We've got an Australian economy that's growing at the fastest rate in four years, that's a truly remarkable situation," CommSec's chief economist Craig James said.

But, even with an optimistic result, analysts warn Australia's economy is not bullet proof, and there is still potential for Australia to enter recession as it transitions from the mining boom.

The national unemployment rate currently sits at 5.7 per cent. Western Australia's jobless rate is at 6.3 per cent, while South Australia is even worse, at 6.4 per cent.

"Some people are doing better, some people are doing worse but in aggregate, basically the economy is in very, very good shape," Mr James said.

"The job market has softened in some states like Western Australia, but from very low levels of unemployment in relative terms."

Western Australia 'in recession'

While the economy is growing nationally, domestic demand in Western Australia fell 2.5 per cent, leading some analysts to say the state was in recession.

A large portion of Australia's population have not lived through a recession and Mr James warned that may give the impression Australia was bullet proof.

"Recessions are just those times that you just don't want to see. It's where unemployment can go from 5 per cent to 10 per cent, in the space of a couple of quarters, people lose their jobs and businesses fail," Mr James said.

"We've still got to work at making sure the economy holds up, and that is the challenge for the future."

Government building investment gave GDP a huge push, adding 0.7 percentage points to GDP. That is a concern for concern for Bill Mitchell, professor of economics at the University of Newcastle, who is wary the only thing keeping the economy afloat is public spending.

"The private investment is in a state of collapse, our external sector, our export sector is basically went backwards this quarter, and the only thing that kept growth above zero was the public sector," Professor Mitchell said.

"Very strong public infrastructure on roads, transports by states and local governments and without the public sector spending, Australia would have been into negative growth in the June quarter."

While the country weathered the Global Financial Crisis relatively unscathed, Professor Mitchell warned household consumption had dropped again.

"It's still growing but it's slowing down because households carry on massive debt loads and will not drive growth to the levels that we saw prior to the Global Financial Crisis," Professor Mitchell said.

"Households are basically, if they want to drive consumption growth, going to expand their credit, and it's at such high levels that I think we're seeing now an unwillingness, of households to do that."

It has been 25 years since the last recession, which ended in June 1991. The new challenge going forward would be for incoming Reserve Bank Governer Phillip Lowe to keep up performance levels into the future.

"We've got a very well balanced economy and if any credit has to go it has to go to the Reserve Bank for ensuring that our economy has managed to chalk up 25 consecutive years of economic growth," Mr James said.