Four Solid Quarters For The Victorian Economy

21 September 2017

Victoria’s AAA-rated economy continues to go from strength to strength thanks to the Andrews Labor Government’s prudent economic management.

Our position as the nation’s leading economy is evident across a range of factors outlined in the Victorian 2016-17 Annual Financial Report, tabled today in the Victorian Parliament.

A final operating surplus of $2.7 billion was recorded, up from the $1.3 billion forecast, while net debt was lower than the revised budget estimate, sitting at 4 per cent of gross state product at 30 June 2017, lower than the 4.6 per cent forecast, and significantly lower than the level inherited from the previous Liberal Government.

State final demand growth is well above the national average, growing at 3.9 per cent in 2016-17, almost double the national equivalent.

Victoria recorded employment growth of 3.7 per cent in 2016-17, the highest jobs growth of all the states and a growth rate not experienced in more than 25 years. In addition, our participation rate reached record levels, a testament to the confidence Victorians have in their economic prospects.

This is also consistent with the most recent consumer sentiment data, which shows Victoria had the highest consumer sentiment of all the mainland states.

Business is also buoyant, with business investment in the year to June 2017 up more than 20 per cent, reflecting the confidence in a strong economy that is creating jobs.

Since the Labor Government came to office, more than 270,000 jobs have been created in Victoria, with well over half of these full time.

Business investment activity strengthened during the year, bolstered by above-average business confidence and conditions.

The Labor Government’s transformative infrastructure program continues to support economic growth, strengthening productivity, growing employment and delivering the infrastructure and services Victorians need.

The total general government sector spend on infrastructure for the 2016-17 period was just over $9 billion - almost double the 2015-16 result, as the Government continues to build for the future and create jobs and opportunity.

Quotes attributable to Treasurer Tim Pallas

“Victoria continues to be one of the strongest economies in the country – which means more jobs, more growth and more opportunities.”

“This result reflects the hard work of the Victorian people, while we remain focused on further strengthening our economy with record investments in infrastructure, housing, health and education.”

Reviewed 19 August 2020

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