Victoria’s recovery is powering ahead, with new figures showing Victoria is leading the nation in economic growth.
Today’s National Accounts data from the Australian Bureau of Statistics (ABS) reveals that Victoria’s State Final Demand grew by 6.5 per cent over the past year, almost two percentage points higher than the closest other state and 40 per cent higher than the national average of 4.7 per cent.
“Our recovery from the effects of the pandemic has been outstanding and that’s underlined by independent assessments that continue to show really positive results,” says Victorian Treasurer Tim Pallas.
“Investment is continuing apace, jobs are growing across the state and businesses are looking to expand. Victorians feel confident about the future and that confidence is well placed.”
The ABS figures confirm that Victoria has recorded the strongest average growth in State Final Demand – a key measure of economic activity – of all the states year on year since the Andrews Labor Government was elected in November 2014.
Growth in the June quarter was driven by a 2.3 per cent increase in consumer spending while the annual increase in this segment reached almost 8 per cent, boosted by confident Victorians spending on recreation, transport, clothing, hotels, restaurants and cafes.
Business investment also rose during the year, demonstrating the confidence of businesses that are investing more capital to boost capacity and operations in Victoria’s dynamic economy.
State Final Demand assesses the total amount of spending on goods and services in the state’s economy.
Independent reports continue to show the vibrancy of the state’s economy and jobs market.
Victoria was rated the number one performer by the latest CommSec State of the States report, while business confidence in Victoria led the nation in last month’s NAB Monthly Business Survey.
The unemployment rate has fallen to 3.1 per cent – the lowest rate seen in Victoria in almost 50 years and the lowest current rate of all Australian states – while regional unemployment is even lower at 2.9 per cent.
Having created almost 330,000 jobs state-wide since September 2020, the Labor Government has exceeded its target of generating 200,000 jobs and outperformed all other Australian states.
There are now more than 3.5 million Victorians in work, with 70 per cent of workers in full-time roles.