ANOTHER GOOD ECONOMIC REPORT CARD FOR VICTORIA

ANOTHER GOOD ECONOMIC REPORT CARD FOR VICTORIA

Posted on 26. Oct, 2010 in Victoria

Victoria, the economic engine room of the nation, received another good economic report card this time from independent economics consultancy Access Economics who today released a comparison of the states’ economies. 

Treasurer John Lenders said the report showed that the Brumby Labor Government had successfully invested in job-creating infrastructure to fill the void left in commercial constructions left by the Global Financial Crisis.

“The Brumby Labor Government’s strong leadership is keeping our economy heading in the right direction and Victoria is generating more jobs than any other state – 116,300 over the past 12 months,” Mr Lenders said.

“Access Economics predicts Victoria will have the best economic growth of the non-resource states this year which is good news for jobs growth into the future.”

In assessing Victoria’s economy Access economics said:

Victoria has been punching above its weight for some time now, growing and prospering amid both good times and bad, and holding its own against the likes of Western Australia and Queensland through a long running commodity boom and a global crisis that might both have been expected to take a bigger toll of Victoria’s manufacturing sector than they did. Perhaps most remarkably, business spending as a share of the State’s economy – a key barometer of business confidence and of future growth potential – is stronger in Victoria than it is in Australia as a whole despite the enormous resource spend seen in the sunbelt States.”

Access Economics also praised Victoria’s ability to keep its economy growing by encouraging new home construction and keeping housing affordable saying:

“One is that Victoria – the outperformer on housing construction for some time now – still has considerable momentum on that front, aided on the demand side by excellent population growth that continues to be faster than the matching growth evident in Australia as a whole, and on the supply side by the ability to deliver house and land packages on the outskirts of Melbourne that are rather more affordable than east coast competitors such as Sydney, Brisbane and the Gold Coast.”

 

Victoria’s housing market continues to show other States how it’s done. With construction in NSW and Queensland languishing, Victoria has been left to take the reins. Around a third of all homes being built in Australia are in Victoria, while approvals are solid, affordability is still (just) better than the national average and the vacancy rate is only now starting to ease back from recent record lows.”

Mr Lenders said Access Economics predicted higher levels of economic growth than the Victorian government even though Shadow Treasurer Kim Wells described the government’s forecasts as “optimistic in the extreme” and incorrectly predicted the state would suffer through a recession.

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