The threat of recession in Australia has receded with new data showing the economy gathered pace in the most recent quarter as mining exports grew.

Mining companies are making up for falling iron ore prices by cranking up tonnages to China of Australia's most lucrative export.

Australian Bureau of Statistics figures released on Wednesday show the economy expanded 0.9 percent during the September quarter and 2.5 percent from a year earlier. The $1.45 trillion economy grew a slower-than-expected 0.2 percent in the April-June quarter.

Treasurer Scott Morrison says the Australia economy is shifting gears after a mining investment boom that carried it through the global financial crisis.