The Australian Bureau of Statistics reported the economy grew 0.5 percent between April and June compared with the previous quarter, a small increase driven by mining exports and government spending.
"The external sector drove GDP growth this quarter, while growth in the domestic economy remains steady," chief economist Bruce Hockman said.
Australia has avoided recession for almost 28 years but Wednesday's figures will fuel concerns about the economic outlook with growth falling to its lowest levels since the global financial crisis in 2009.
No other OECD nation has enjoyed such a prolonged uninterrupted period of economic growth, in part thanks to a mining boom in the 2000s on the back of strong demand for resources from China. Shane Oliver, chief economist at AMP Capital, said the current risk of a recession "cannot be ignored", with conditions in some pockets of the economy already feeling "recession-like".
"With consumer spending still struggling to lift noticeably, falling residential construction, moderate business investment growth, the private sector side of the economy will likely remain weak," he said. The central bank kept the main interest rate at a record low of 1.00 percent on Tuesday owing to subdued consumer spending and a slump in the housing market. Analysts believe the bank could further cut rates in the coming months to help boost the economy.