Posted on 26. Jul, 2010 in Victoria

Access Economics has paraphrased When Harry Met Sally to describe the jealousy felt by other states when looking at Victoria’s high-performing economy and record of creating jobs.

Treasurer John Lenders said the Access Economics report also predicted that Victoria would have the fastest growing economy of the non-resources states for every one of the next five years.

“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,” Mr Lenders said.

When commenting on Victoria’s economy in their report Access Economics said:

With apologies to the restaurant scene in When Harry Met Sally, we can only imagine that other State Premiers must look at John Brumby, sigh, and say “I’ll have what he’s having”. Victoria continues to chalk up enviable outcomes on key indicators. That includes jobs, where the State has racked up the fastest growth in Australia. And it includes housing construction, where Victoria has made the best effort of any State to keep up with demand, and where the leading indicators in housing finance and building approvals suggest that the State will continue to outstrip Australian gains for at least a little while further.


And not only has Victoria managed to outperform on these and other measures, but it has also managed to do that through both boom and bust. Remarkably, spending by businesses is now a bigger share of the State’s economy than is true for Australia as a whole. That is a pretty impressive statistic amid the resource boom of recent years. Even the Victorian retail outlook appears a little healthier than that seen in NSW, thanks to good news on jobs and population. – Access Economics, Business Outlook, June 2010

“This report confirms what many Victorians already know.  We are punching above our weight and by working together we are keeping the worst of the Global Financial Crisis from crossing over the Victorian border,” Mr Lenders said.

“Victoria is the economic engine room of the nation.  But it didn’t just happen by accident. We took the tough decisions to rise to the challenge of the Global Financial Crisis.  We are strengthening the Victorian economy for Victoria’s families – securing our prized AAA credit rating, delivering surplus budgets to fund infrastructure and we created 115,800 jobs last financial year – three times as many as promised.”

The report also found that Victoria had also made the best effort of any state to release land to take the pressure off housing on the outskirts of Melbourne and had the most generous first home owner assistance of any state – worth up to $26,500 in regional Victoria.

Mr Lenders said the Access Economics report was a much more accurate picture of the relative performance of the state economies than the CommSec State of the States report which he again criticised saying its methodology inaccurately rewards states that have volatile performance which leads to fundamentally flawed results.

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