But instead of rallying, the S&P/ASX 200 ended Thursday down 0.1 percent at 5436.884, essentially flat with early November levels. On Friday, it was 0.3 percent higher in early trade.
"Those (GDP) numbers were good, but the news didn't actually help the share market because a lot of the growth in GDP actually came from exports, mainly resources exports," Oliver said, noting many resource players increased production to compensate for lower commodity prices.
Even the Reserve Bank of Australia (RBA) keeping interest rates at a record low 2.5 percent since August of last year hasn't provided a boost to the market.
Read More Is trouble in store for the Australian economy?
"The low level of rates is reflective of weak growth," Oliver said.
Australia's economy enjoyed 20 years of strong growth thanks to its mining boom, but lost some of its luster recently as the boom showed signs of peaking and growth in China – its largest trading partner - slowed.
In addition, Australia's conservative government delivered the country's harshest budget in 20 years last month; many economists are concerned about the toll it will take on the economy. Business and investor confidence dropped following the budget, while red-hot housing prices eased – a factor that economists worry could dampen consumer spending.
Read More Australia's budget: Harsh or fair?
Goldman Sachs also doesn't expect the market to get much of a boost from low interest rates, even if they are cut further.
"If the RBA delivers the rate cut we forecast for September, we expect the market will take it as more of a bearish signal, emphasizing a weak domestic economy," Goldman said in a note dated Tuesday. "With the response of the economy to the earlier easing having been disappointing, we are concerned that financial conditions are already consistent with subtrend growth just as the sharpest decline in mining investment is likely to be recorded."
The Australian dollar remains stubbornly high despite declines in bulk commodity prices, resulting in tighter macro conditions, it said.