The Allan Labor Government's investment in workers, transport and jobs is driving our economy forward and our strong economic plan is protecting our future.
The 2024-25 Annual Financial Report published today shows the Labor Government's plan to create more jobs by backing business and state-shaping infrastructure investment is strengthening Victoria's economy.
The report says the strength of the economy has supported a strong labour market, with both the share of working-age Victorians in employment and the participation rate at record levels in 2024-25.
Employment growth was also strong in 2024-25, and the unemployment rate remained low by historical standards, with unemployment averaging 4.4 per cent in 2024-25 - below the 20-year pre-pandemic average of 5.5 per cent.
Business investment grew by 1.2 per cent in 2024-25, compared to an increase of just 0.7 per cent nationally, and has increased by 53 per cent in 10 years, the strongest growth of all the states.
The report shows that the Labor Government delivered an operating cash surplus of $3.2 billion for the general government sector, $2.6 billion higher than forecast in the 2025-26 Budget.
Net debt was $4.7 billion lower than the revised estimate in the 2025-26 Budget, demonstrating continued progress towards our five-step fiscal strategy by stabilising and reducing net debt as a share of the economy.
Victoria's economy continues to grow, with state final demand - a key indicator of economic activity - increasing by 1.8 per cent in real terms in 2024-25 following growth in 2023-24 and is 15.6 per cent larger than prior to the pandemic.
The Big Build is creating thousands of jobs and delivering new schools and health facilities, as well as new road and rail projects, including the Metro Tunnel - the biggest upgrade to Melbourne's train network in over 40 years.
As stated by Treasurer Jaclyn Symes
"The Victorian economy is strong, and well-supported by our strong economic plan that is on track to deliver a budget surplus from 2025-26 and reduce net debt as a proportion of the economy over the forward estimates."
As stated by Minister for Finance Danny Pearson
"As our economy grows, we remain focused on the things that matter most to Victorians - helping with the cost of
living and supporting families, jobs, and businesses while we open up major projects like the Metro Tunnel and West Gate Tunnel."
