Victoria’s economy is the strongest in the nation with the state leading all-comers in a key economic indicator – state final demand – in the December quarter and over the year.
Today’s Australian Bureau of Statistics (ABS) results show that Victoria’s growth in final demand – a measure combining private and public spending and investment – was the strongest of all the states for the final quarter of 2022.
The ABS data demonstrates the sustained recovery of Victoria’s economy, elevating annual state final demand growth to 4.1 per cent, outstripping the next closest state by almost 20 per cent, with the national rate sitting at 3.3 per cent.
The result was primarily driven by bumper growth in household spending over the year to December 31, with robust growth in business investment also contributing.
Earlier this week, Victoria trumped all other states with a significant 3 per cent or $9.1 billion spike in retail trade for January, with a solid 7.2 per cent rise in retail activity recorded over 12 months.
Victoria’s underlying economic strength is further demonstrated by the state’s employment growth, which has been stunning since the Andrews Labor Government was elected.
The Labor Government has crushed the 6.7 per cent unemployment rate inherited from the former Coalition government to the current 4.0 per cent.
Jobs have grown by more than 340,000 since the lowest point in the pandemic economic downturn – September 2020. This is the largest increase of all the states and easily surpasses our Jobs Plan target of creating 200,000 jobs by 2022 and puts the state well on track to meet our 2025 target of 400,000 jobs.
Almost 570,000 jobs have been created since November 2014, meaning one in six current Victorian jobs have been added since the Government was elected.
Quotes attributable to Treasurer Tim Pallas
“These figures show that Victoria has the strongest economy in the country.”
“We’ve recovered in a sustained way due to the brilliant efforts of millions of workers across state and the resilience and innovation of our businesses.”
“Jobs have soared by more than 340,000 since the low point in the pandemic downturn and Victorians are justifiably confident about the future.”
Reviewed 01 March 2023