The latest Deloitte Access Economics’ Business Outlook report has revealed Victoria is set to lead all states in economic growth over the next five years, highlighting the success of the state’s strategy for sustainable, job-creating growth.
Treasurer Tim Pallas expressed satisfaction with the report, stating that it underscores the effectiveness of the government’s strategy, the government said in a media release.
The Deloitte report forecasts that Victoria’s gross state product will experience a growth rate of 2.5 per cent in 2023-24, outpacing all other states and territories.
Moreover, Victoria is expected to maintain its economic leadership over the five years leading up to 2027-28, with an average annual growth rate of 2.3 per cent.
These optimistic forecasts align with recent data from the Australian Bureau of Statistics, which indicates that Victoria has outpaced NSW, Queensland, Western Australia, and Tasmania in economic growth over the past two years.
The state’s robust economy has translated into record job creation, with employment levels just shy of the all-time high achieved late last year, reaching a total of 3.68 million.
Since the height of the pandemic economic shock in September 2020, almost 530,000 jobs have been created in Victoria, showcasing the state’s exemplary performance in both absolute and percentage terms, the report found.
The labor force participation rate, currently at 67.4 per cent, is around a record high, indicating workers’ confidence in securing employment.
The Deloitte Access Economics report predicts further positive indicators for Victoria’s economy.
For instance, household consumption is anticipated to grow by 1.3 per cent in 2024, surpassing the national forecast of 1.1 per cent.
Dwelling investment is set to increase by 5.5 per cent this year, with a notable surge in dwelling commencements in Victoria, contrasting with a national decline.
The report also highlights the substantial growth in Victoria’s services exports, estimated to have surged by almost 50 per cent last year.
This surge is attributed to the rapid return of international students to the state’s higher education sector and a rebound in international tourism, signaling a robust recovery in these critical sectors.
Tim Pallas, it was communicated that the economic strategy revolves around job growth, fostering the strength of local communities, and incentivizing businesses to invest and enlarge their workforce.
Additionally, the statement indicated that Victorians have confidence in the future, and assessments like the report affirm the validity of that confidence.