Victoria’s economy continues to thrive with strong annual growth, driven by business investment and the Andrews Labor Government’s record breaking infrastructure boom.
The Australian Bureau of Statistics (ABS) today confirmed Victoria has the best performing economy in the nation with the highest annual growth rate of any state.
The ABS National Accounts released today show state final demand (SFD) grew by 4.3 per cent over the year to September.
These results mean more jobs for Victorians, more investment in our local businesses, and reflect the Labor Government’s unprecedented investments in schools, hospitals, roads and public transport.
Victoria’s annual growth is well above national growth in final demand of 2.7 per cent.
Today’s result means Victoria’s annual state final demand growth has now averaged 4.4 per cent since the December quarter of 2014.
The strong annual result was driven by significant growth in household consumption, public demand, dwelling investment and business investment.
Household consumption growth was the highest among the states at 3.3 per cent, while business investment was also strong at 4.4 per cent – the second highest among the states.
The positive result comes on the back of solid data this week confirming that Victoria’s building and manufacturing industries also continue to lead the nation.
ABS data released earlier this week shows the value of Victorian building approvals for the year to October totalled $40.8 billion – the highest in Australia – and contributing a third of the total value of all building approvals across the nation.
Non-residential building approvals were particularly strong, up 31.9 per cent for a total of $1.1 billion.
These approvals boost housing supply, help make buying a house more achievable, particularly for young Victorians.
Meanwhile, Victoria's Performance of Manufacturing Index (PMI) rose by 2.8 points to 56.3 points in November and is the highest of the mainland states and well into expansionary territory.
The results show Victoria’s building and manufacturing industries are the strongest in the nation and continue to benefit from the Labor Government’s record investment in health, education and transport infrastructure.
Quotes attributable to Treasurer Tim Pallas
“This data shows Victoria continues to be the engine room of the national economy.”
“These strong results mean real benefits for Victorians, through the creation of more jobs and the building of critical infrastructure such as schools and hospitals as well as better roads and public transport.”
Reviewed 19 August 2020