The latest Australian Bureau of Statistics National Accounts data confirms what Australia's leading business voices have been warning for weeks, that the private sector is contracting in Victoria.
Victoria's State Final Demand grew by only 1.7 per cent over the past year, with government and household consumption comprising almost 92 per cent of the annual economic growth.
Key figures from the data show:
• Business investment is down 1.5 per cent.
• Non-dwelling construction (new commercial buildings) has collapsed, down 16.5 per cent.
• Households are cutting back on essentials, with electricity and gas spending down 7.6 per cent.
Shadow Treasurer, James Newbury, said the figures confirm that State Labor has overseen an anti-business environment that is undermining the private sector.
"This new data proves that the State Labor Government has been hiding behind spin, there is a problem in Victoria and it needs fixing."
An army of business leaders has been sounding the alarm for weeks, including:
Reece Chief Executive Peter Wilson who said that Victoria is "the toughest place in the country" to do business.
And SEEK co-founder Paul Bassat who said: "Whenever something ... is done in this country that's anti-business, the reality is there's a good chance it is being done in Victoria".
Mr Newbury said the combined data and warnings paint a bleak picture.
"When some of our nation's top Chief Executives are saying Victoria is the hardest place in the country to do business. The data shows that's true."
"Our economy is losing its productive base. Without a strong private sector, there is no sustainable path to growth, no confidence for investors, and no new jobs for Victorians."
