Wednesday, 04 September 2013
Victorian economy remains strong
Victorian state final demand remained steady in the June quarter, following strong growth in the previous quarter, Treasurer Michael O’Brien said today.
Victorian state final demand (SFD) showed an overall rise of 0.7 per cent in 2012-13 compared with the previous year.
“Today’s ABS results show that the fundamentals of the Victorian economy remain strong.
“These figures are in line with our expectations in the 2013-14 Budget and the Victorian economy is performing well overall,” Mr O’Brien said.
The 2013-14 Victorian Budget forecast economic growth of 1.5 per cent in 2012-13, rising to 2.25 per cent in 2013-14.
Exports continue to underpin Victoria’s economic growth, with exports of goods increasing by 2.1 per cent in the June quarter. International trade does not form part of the SFD outcome, but will contribute to 2012-13 GSP
“Today’s figures do not include our strong exports and the lower Australian dollar will assist export activity over the coming months,” Mr O’Brien said.
Public investment is now 2.5 per cent lower than one year ago, due to a 23.4 per cent fall in Commonwealth investment in Victoria. State and local general government expenditure rose by 40.6 per cent over the same time
Private sector investment has also softened in the lead up to the Federal election and is expected to improve once stability returns to Canberra.
“Instability in Canberra and policy announcements such as Federal Labor’s botched FBT reforms have not been conducive to investment,” Mr O’Brien said.
“A clear agenda and a major infrastructure projects pipeline coming out of Canberra will be critical to encourage private sector capital investment right across the country.
“Today’s figures highlight why the Victorian Coalition Government’s record $6.1 billion infrastructure program – including major projects such as the East West Link – is critical to drive economic growth and boost