The latest economic report for Victoria is now available.
Victoria’s economy remains upbeat, with indicators showing the state experiencing economic growth, aided by an expanding population.
This has provided room for more growth in the building and construction sector and made the sector’s contribution to Victoria’s economy reach a record level.
For the full report, click here. Below are highlights of the report:
• Economic growth in 2017-18 is expected to be almost a full percentage point higher than the national average (3.7 per cent compared to 2.8 per cent) and 0.6 per cent higher than economic growth in NSW, estimated at 3.1 per cent
• Overall business confidence is strong, with confidence in the national building and construction sector well over the national index
• Victoria is the only state in the last 12 months to record population growth above the national average of 1.6 per cent. This is particularly given Victoria accounts for only around 25 per cent of the Australian population
• Employment growth was higher than in any other state or territory – 3.5 per cent in 2017 compared to the national average of 2.2 per cent, with Victoria’s share of employment growing from 25.9 per cent to 26.2 per cent in the last 12 months
• Unemployment is slightly above the national average – recorded at 5.5 per cent in Victoria compared to 5.4 per cent across the country. This is to be expected given Victoria’s very high population growth rate
• House prices grew by 10.2 per cent in Melbourne over the year to December 2017 – a fall around 3 per cent on the previous quarter – and a good sign that new supply is beginning to meet demand
• The value of non-residential construction activity in Victoria has spiked in the past year, with work done over the year to September 2017 recorded at over $40 billion for the first time since statistics have been collected. It was also the strongest 12-month period in terms of growth in non-residential construction since June 2008
• Total value of work done in the construction sector is expected to top $48 billion in 2017-18, the highest value of construction work ever recorded in Victoria in a single year. It is also the highest the sector has contributed to Victoria’s economic activity in percentage terms, accounting for 12 per cent of Victoria’s economic activity
• By sector in Victoria, the value of work done in the year ending September quarter 2017:
o $22.9 billion in residential construction activity
o $11.1 billion in non-residential construction activity
o $12.4 billion in engineering construction activity.