Official figures show Australia's economy grew by 0.9 per cent in the September quarter, and by 2.5 per cent in the 12 months to September - a better-than-expected result.
"The transition process is under way," Mr Morrison told reporters in Canberra on Wednesday.
Mr Morrison said it was a strong increase from the 1.9 per cent growth in the year to the June quarter.
"The key drivers of economic growth in the September quarter were net exports, household consumption and housing construction, more than offsetting the expected fall in business investment as we move through this transition period," he said.
"There are positive signs of a strengthening economy and signs that our economy is heading in the right direction."
Exports of goods and services in September quarter rose by 4.6 per cent - the strongest growth in 15 years.
Mr Morrison said employment was growing at the fastest annual pace in five years and workforce participation was increasing.
This was likely to be followed by higher investment by business in plant and equipment.
'A good sign heading into Christmas'
The treasurer said growth in household incomes and rising wealth had lifted household consumption by 0.7 per cent in the September quarter and had supported a pick up in retail trade.
"(This) is a good sign heading into Christmas," he said.
He said Australians should take confidence in the new figures and what it says about the strength of the economy.
"What we're seeing in these figures is about economy transitioning, these figures are showing the journey that we're on and I think these figures should give Australians confidence about the prosperity that still remains ours."
He said Australia's annual growth rate is higher than the G7 and above the OECD average.
"These figures highlight while we're doing well comparably to the rest of the world our future very much will depend on howsuccessful we are with productivity improvements in the economy going forward," he said.
Economy on track for moderate growth: RBA
Australia's economy is on track for moderate growth despite a better-than-expected pickup recently, Reserve Bank governor Glenn Stevens says.
The result beat economists' forecasts and followed a disappointing 0.3 per cent rise in the June quarter.
Addressing a business function on Wednesday, Mr Stevens said the September quarter result would be welcomed.
"Let's not overplay the significance, but the economy is growing and I think that the outlook for continued moderate growth, you would still say that's the outlook based on this incremental bit of additional information," he said.
"And I have no further guidance to offer, `chilling out' or otherwise, on interest rates today."
