Victoria’s Economy Grows By 2.5%

Victoria’s Economy Grows By 2.5%

Victoria Treasurer Kim Wells

Strong Outcome For Victoria Despite Challenging Times

Victor P Taffa

Treasurer Kim Wells today welcomed data from the Australian Bureau of Statistics indicating that Victoria’s economy grew by 2.5 % in 2010-11, as forecast in the 2011-12 Victorian State Budget.

Mr. Wells said the result demonstrated the ongoing resilience of the Victorian economy despite continued uncertainties in the global and national economy.

“Victoria’s Gross State Product increased by 2.5 % in 2010-11, in comparison with the Australian economy which grew by 2.1 % in the same period.” Mr. Wells said.

“This represents a strong result for Victoria and reflects an improvement on the result for 2009-10 growth of 2.3 %.” Mr. Wells said.

Victoria’s Gross State Product (GSP) growth was ahead of all other states and territories with the exception of Western Australia and the ACT.

“Importantly, Victoria’s GSP per capita grew by 1 % over the year, when in recent years Victoria’s GSP per capita had been going backwards.” Mr. Wells said.

GSP per capita fell in 2008-09 and rose only marginally in 2009-10.

Major drivers of the result were growth in the professional, scientific and technical service category, as well as in the finance and construction industries. Victoria also performed well in household final consumption and growth in dwelling investment.

Mr. Wells said the figures reflected the impact of some of the economic challenges for Victoria, such as the high dollar which has led to some weakness in services trade including tourism and international education and the manufacturing sector.

Mr. Wells said it was encouraging to see that agriculture grew by 4 % in the year, after contracting in 2009-10.

Standard & Poor’s recently highlighted the strong and responsible financial management of the Victorian Coalition Government when reaffirming Victoria’s AAA credit rating.

Mr. Wells said the Coalition Government was implementing a responsible plan to return Victoria’s finances to a sustainable setting and grow Victoria’s economy.

“The Brumby Labor Government left Victoria with a structural deficit after government expenditure outpaced revenue over the past decade, and if Victoria had continued down Labor’s economically irresponsible path then we would have been forced to borrow just to pay ongoing expenses by 2015-16.” Mr. Wells said.