Disappointing growth puts pressure on surplus projections and raises prospect of more rate cuts

The Australian economy grew at a slower pace than expected last year, national accounts figures show.

Listen to my analysis from The World Today.

Australian Bureau of Statistics figures show gross domestic product growth of 2.3 per cent last year on a seasonally adjusted basis, which was slightly less than expected.

Federal Treasurer Wayne Swan acknowledged the result was "somewhat softer" than anticipated and reflected "patchiness" in an economy that was going through structural change.

In the final quarter of the year the economy expanded 0.4 per cent, following expansion of 0.8 per cent in the previous quarter, downwardly revised.

Economists had been expecting much stronger growth of 0.8 per cent for the period.