Victoria has recorded its fourth consecutive year of above-trend economic growth in 2018-19, with results well above the national average and the highest of the mainland states.
Australian Bureau of Statistics data released today shows Victoria’s real gross state product grew by 3 per cent in 2018-19. By comparison, national growth was just 1.9 per cent for the year.
In nominal terms, Victoria’s economy expanded to $455 billion.
Victoria’s exceptional results were fuelled by strong growth in business investment and public consumption across the state.
Business investment increased by 8.5 per cent over the year – the best in the nation and nearly double the second-best performer, New South Wales, with 4.8 per cent growth.
Victoria’s household consumption growth also outperformed all other states, increasing by 2.6 per cent over the year.
Victoria’s state final demand was the highest of the mainland states, growing 3.3 per cent over the year.
Over the nearly five years since the Andrews Labor Government was first elected, Victoria’s gross state product growth has averaged 3.5 per cent per year.
Prior to 2014, Victoria’s long-term growth averaged just 2.8 per cent per annum.
Victoria’s economy continues to perform well despite the downturn in the property market and global uncertainty.
Despite the weaker financial conditions Australia is experiencing, Victoria retains a AAA credit rating and remains on track to deliver a surplus for the 2019/20 financial year.
Victoria’s jobs market also continues to perform strongly, with record levels of labour force participation and a low unemployment rate.
A total of 103,200 people found a job in Victoria over the year to September 2019, the largest increase of all the states.
Quotes attributable to Treasurer Tim Pallas
“Under the Andrews Labor Government, Victoria’s economy has continued to grow well above its long-term average.”
“Our strong economic management is giving Victorian businesses the confidence they need to continue investing in our great state and creating Victorian jobs.”