Victoria’s Growing Economy Forges Ahead
Victoria’s economy continues to thrive with strong annual growth in state final demand (SFD), driven by the Andrews Labor Government’s unprecedented infrastructure investment.
The Australian Bureau of Statistics’ (ABS) National Accounts released today show SDF grew by 4.4 per cent over the year to December 2017 – well above national final demand of 3.1 per cent.
Over the year, growth in Victoria’s public investment was 22.5 per cent, the highest of all the states and almost double the second highest growth rate of 12.3 per cent in South Australia.
Victoria’s SFD annual growth was driven by the Labor Government’s major infrastructure investment and positive gains in household consumption (4.1 per cent) and public consumption (6.4 per cent), which were the second highest of the states.
Household consumption growth was also a key contributor to the quarterly SDF result, growing by 1.3 per cent in the December quarter 2017 – the second highest of the states.
State final demand is a measure of economic activity that looks at the total amount of goods and services used in the economy, excluding international and interstate trade.
The positive result comes on the back of solid data this week confirming that Victoria’s building approvals and retail and international trade continue to lead the nation.
The ABS data shows Victorian building approvals reached a record high of $40 billion in the 12 months to January 2018, and goods and services export volumes rose 7.5 per cent over the year to the December quarter – the highest of all states and well above national growth of just 0.8 per cent.
Quotes attributable to Treasurer Tim Pallas
“This data shows Victoria continues to be the engine room of the national economy.”
“When the Andrews Labor Government was elected, we promised a strong pipeline of economic activity that created jobs and grows our economy – and we are delivering that.”
“We have invested heavily in Victoria’s infrastructure, and we will continue investing with an eye to the future, creating a prosperous state for all.”