Victoria’s strong economic and jobs growth is set to continue according to the June Quarter Business Outlook report released today by Deloitte Access Economics (DAE).
DAE predicts above trend growth of 3.7 per cent of gross state product for the 2018-19 financial year, which would be the strongest growth rate in Victoria since 2005.
Significant business investment – including $20 billion worth of potential commercial projects – and strong household consumption were key contributors to Victoria’s forecast growth, as was the Andrews Labor Government’s record infrastructure pipeline.
Private engineering and commercial construction is also forecast to grow – by 2.9 per cent in 2018-19 and 5.5 per cent in 2019-20 – led by expansion in the infrastructure, office, accommodation, education and health sectors.
Victoria’s unemployment rate has been forecast to fall to 5 per cent in both 2018-19 and 2019-20, which would be the lowest level since 2012.
Employment is expected to increase across the two years by 1.9 and 1.4 per cent respectively.
Since November 2014, Victoria has been the fastest growing economy in the nation, and is estimated to have added $48 billion in real terms to the economy.
During that same time, Victoria’s economy has added more than 340,000 new jobs – more than a third of all jobs created across Australia.
The Labor Government’s program of infrastructure investment is forecast to average $10.1 billion a year over the next four years.
Quotes attributable to Treasurer Tim Pallas
“The strength of the Victorian economy is a result of our continued investment in our unprecedented infrastructure pipeline – driving skills, jobs and opportunities for all Victorians, right across the state.”
“As our economy grows, we’re delivering for Victorian job seekers and building the health, education and transport infrastructure our state needs.”
Reviewed 19 August 2020