Despite global economic headwinds, the impacts of COVID-19 and bushfires, and a softening national economy, Victoria continues to lead the nation when it comes to jobs growth and infrastructure investment.
The state’s mid-year financial report shows more than 90,000 people have found employment in the past 12 months ending January – the highest increase in the country.
The report released by Treasurer Tim Pallas today shows Victoria is well placed to handle the significant economic impacts of COVID-19, as we put the health and wellbeing of Victorians first.
While it’s too early to predict the full economic impact of COVID-19, the Department of Treasury and Finance has advised the Government that it will represent at least a 0.5 per cent reduction in growth – or almost $7 billion – across the 19/20 and 20/21 financial years.
Victoria’s jobs growth is a strong buffer against events like bushfires and the spread of COVID-19. More than 530,000 jobs have been created since the Labor Government came to power in 2014 – the highest growth rate in the nation.
The Andrews Labor Government’s record pipeline of infrastructure projects is also a cornerstone of economic activity in the state, with $7.3 billion invested for the period to December 31 for projects including the West Gate Tunnel, Metro Tunnel, level crossing removals, as well as new schools and hospitals.
The mid-year financial report shows Victoria’s State Financial Demand grew by 1.3 per cent over the year to December 2019, in line with national Final Demand.
The uneven flow of major revenue items and expenditure means the mid-year budget update shows a $1.1 billion deficit for the six months to December.
The Government remains determined to deliver the strong, fiscally-responsible Budget it promised the people of Victoria, while also managing the COVID-19 global pandemic and its impacts on our nation’s economy.
We’ll be making the hard decisions to make sure our economy remains resilient and is the best equipped to face these challenges.