Victorian state final demand increased by 0.8 per cent in the March quarter, recording the strongest outcome of all States and Territories, Treasurer Michael O’Brien said today.
“Victoria’s growth has been driven by a significant increase in private business investment (+57.1 per cent) and smaller gains in public consumption (+2.6 per cent) and household consumption (+0.6 per cent),” Mr O’Brien said.
“Our export performance also shone in the March quarter, rising by 5.3% against a national average of 1.1%.
“We are fortunate in Victoria that we have a diverse and flexible economy that responds well to challenging global conditions.
“The strength of the Victorian economy confirms the Victorian Coalition Government’s responsible financial management is encouraging greater business investment,” Mr O’Brien said.
Victorian public investment decreased in the March quarter, due to the unwinding of large increase from the desalination plant transfer. Public investment is now 19.3 per cent lower than one year ago due to a 29.1 per cent fall in Commonwealth investment in Victoria.
Dwelling investment grew by 4.3 per cent over the year and remains larger than any other State or Territory, despite a softening in the March quarter.
“Victoria’s record $6.1 billion infrastructure program, announced in the 2013-14 State Budget, will continue to drive economic growth and boost productivity in the short to medium term,” Mr O’Brien said.
“Victoria is moving in the right direction and we expect further strengthening of the state’s economy over the coming year.
“Consumer confidence is also returning in a low interest rate environment, encouraging consumption, which should increase steadily in 2013-14.”