Victoria’s strong economy continues to prosper with state final demand growing by 5.2 per cent over the year to the June quarter – the highest growth rate for a fiscal year since 2009-10.
Data released today by the Australian Bureau of Statistics (ABS) shows Victoria has the highest annual growth rate of any state in the country and is well above national growth in final demand (3.5 per cent).
Business investment, public demand and household consumption all contributed to significant annual growth.
Dwelling investment in Victoria remains strong despite a moderation in house prices, reflecting strength in housing construction and boosted by cuts to stamp duty for first home buyers and those building in regional Victoria.
Business investment also recorded strong growth of 9.0 per cent for the year while household consumption was well above trend at 3.8 per cent, signalling strength in both the business and household sectors.
In the June quarter alone, Victoria’s state final demand grew by 1.2 per cent, the second fastest among the mainland states, and above national final demand of 0.6 per cent.
Public investment lead growth for the June quarter, up 5.8 per cent, a direct reflection of the Andrews Labor Government’s significant infrastructure investment pipeline.
Government infrastructure investment will reach $13.7 billion in 2018-19, with a total of $78.9 billion in state capital projects commencing or underway.
Since 2014, the Victorian economy has grown by an estimated $48 billion in real terms and is the fastest growing economy in the nation.
The Labor Government has helped create 370,000 new jobs for Victorians, underlining the strength of the economy during that time.
As stated by Treasurer Tim Pallas
“Victoria continues to be the engine room of the nation thanks to our strong economic management and record investment in infrastructure for the future of our state.”
“This is a fantastic result for Victorians and shows that the smart, focused investments made by this government are creating jobs and providing opportunities for Victorians across the state.”
“We promised Victorians a strong pipeline of economic activity that would create jobs and grow our economy – and we are delivering that.”