Victoria’s State Final Demand has seen a 6.5 per cent expansion over the past year, confirming that the state has recorded the strongest economic activity in Australia, according to a report from the Australian Bureau of Statistics (ABS).
The figure represents a two-point advantage compared to the closest other state and a 40 per cent to that of the national average, which stands at 4.7 per cent.
State Final Demand, a key measure of economic activity, assesses the total amount of spending on goods and services in the state’s economy.
According to ABS, growth in the June quarter was driven by a 2.3 per cent increase in consumer spending while the annual increase in this segment reached almost 8 per cent.
The figure comes as Victorians spend on recreation, transportation, clothing, hotels, restaurants, and cafes.
“Our recovery from the effects of the pandemic has been outstanding and that’s underlined by independent assessments that continue to show really positive results,” said Treasurer Tim Pallas.
Business ventures also skyrocketed in the state, demonstrating the confidence of businesses that are investing more money to boost capacity and operations in Victoria’s dynamic economy.
Victoria also ranked as the top performer in the latest CommSec State of States report, while business confidence in the state led the nation in August’s NAB Monthly Business Survey.
“Investment is continuing apace, jobs are growing across the state and businesses are looking to expand. Victorians feel confident about the future and that confidence is well placed,” Pallas added.
