ABS confirms the strength of Victoria’s economy

• Victoria’s growth rate of 1.6 per cent is stronger than forecast
• Outperforms average GSP growth rate of the non-mining states
• Continuing to invest in infrastructure and services for Victorian families

The Victorian Coalition Government has welcomed today’s data released by the Australian Bureau of Statistics (ABS) that shows Victoria’s economy has grown in the face of challenging global and national conditions.

Treasurer Michael O’Brien said that the figures indicate that Victoria’s economy grew by 1.6 per cent, ahead of the 1.5 per cent estimate in the 2013-14 State Budget. Labour productivity has grown by 1.4 per cent and Victoria’s economy has grown by 6.7 per cent since 2009-10.

“Victoria’s growth rate of 1.6 per cent is well above the average growth rate of the non-mining states (1.0 per cent),” Mr O’Brien said.

“Victoria has a stronger economy because of the Coalition Government’s strong and responsible economic management over the past three years.

“The Coalition Government is managing Victoria’s finances well in challenging times and we have the right strategy to safeguard the state’s economic future.

“Responsible economic management is why there are now 1,286 more police officers, 533 PSOs on our train stations, over $1.8 billion invested in our hospitals and $11.6 billion invested in our education system benefiting Victorian families and communities.”

The ABS figures follow recent news that Victoria’s population is growing rapidly and Victoria remains the only state in Australia to hold a AAA credit rating with a stable outlook.

“Today’s result is off the back of other evidence pointing to confidence in the Victorian economy, including population growth of (1.8 per cent) and the largest increase in births across the country (8.3 percent),” Mr O’Brien said.

“Confidence in the Victorian economy is also reflected in other ABS figures released today that show business capital spending in Victoria rose 4.2 per cent in the September quarter.”

Mr O’Brien said growth in health care, financial and insurance services, as well as strong contributions from the wholesale trade and professional services, continued to drive the Victorian economy.

“Victoria’s knowledge industries – financial and professional services – continued to perform in 2012-13 and good seasonal conditions led to growth for Victoria’s agriculture exports,” Mr O’Brien said.

The Victorian tourism, dairy and grains industries were major contributors to the 2.6 per cent growth in exports of goods and services.

“The Coalition Government has made responsible financial decisions and cut our cloth to fit while continuing to invest in front line services and state shaping major infrastructure,” Mr O’Brien said.

“Labor’s unfunded promises would trash Victoria’s finances and threaten our economic future to the detriment of Victorian families and communities.

“Daniel Andrews and Labor talked down the economy by repeatedly claiming Victoria is in recession. Today’s figures confirm that Labor’s claims simply do not stack up and that Labor cannot be trusted when it comes to Victoria’s economic future.

“Daniel Andrews and Labor claim to support the AAA credit rating but oppose every measure needed to achieve it. He announced an unfunded transport wishlist and a thought bubble to sell the Port of Melbourne without having done his homework.

“The Coalition Government will continue to build for growth by strengthening the state’s finances and making major infrastructure investments to secure Victorian jobs and economic growth,” Mr O’Brien said.