Industry News, Latest News, Victoria

Construction investment drives VIC economy

Victoria’s mid-year financial report has found its record infrastructure investment and job growth has solidified the state’s position as Australia’s strongest economy.

Growth in the construction sector was one of the key drivers for jobs identified in the report, as the Victorian Government invested $6 billion into infrastructure in the six months to 31 December 2018.

The 2018-19 mid-year financial report shows employment is up 3.5 per cent over the year to January 2019 with unemployment falling to 4.5 per cent.

It also reports the economy is equipped to handle future challenges, such as a softening property market.

State final demand grew by 5.2 per cent over the year to the December quarter, more than double the growth in national final demand.

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Net debt remained consistent with budget forecasts, which supports Victoria retaining its triple-A credit rating from major credit rating agencies.

Victorian Treasurer Tim Pallas said the state’s economic fundamentals are strong.

“We’re getting on with building the infrastructure Victoria needs, creating thousands of jobs and delivering on our election promises,” he said.

“While the property market softens, our strong budget management means Victoria is well placed to meet any future challenges.”

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