Growing, low risk, transparent economy

While Victoria accounts for only 3% of Australia’s land mass, it drives approximately 23% of Australia’s economic activity. Our strength is sustained by a diverse economy and a history of prosperity and growth across many industries.

This diversity is one reason why Australia was able to weather the 2009 global financial crisis and achieve its status as the 12th largest economy in the world, helping drive an Australian nominal GDP that is set to become A$2.4 trillion in 2023, according to the International Monetary Fund.

Victoria punches above its weight

As a state economy, the Victorian economy is larger than most South-East Asian nations. Outstripping national economies such as Singapore, Philippines and New Zealand, in 2021-22 our state economy generated A$515 billion Gross State Product (GSP).

Source: State budget 22-23, Department of Treasury and Finance

A low risk and stable business environment

Reflecting a stable business environment, Australia and Victoria both have one of the highest credit ratings in the world. Maintained for over ten years, the Australia credit rating is AAA, according to Standard & Poor's agency. This rating is bolstered by Victoria's consistently strong economic performance, good financial management and a supportive national and institutional framework.

Australia's sound legal and governance frameworks, combined with our political stability, provides a secure investment and business environment. Australia ranks in the top 16 countries for rule of law and in the top four countries for the quality of our regulatory environment according to the World Bank's Worldwide Governance Indicators (2021). We also rank highly for fair administration of justice and protection of property rights.

Melbourne is projected to have low economic exposure risk compared to other major and regional financial cities according to Lloyd's City Index which measures 18 economic exposure threats including market crash, cyber-attack, flood, human pandemic, solar storms, wind storms, power outages, plant epidemic, sovereign default, heat waves, terrorism, earthquakes, droughts, oil price shocks, volcanoes, tsunamis and nuclear accident.

Source:  Lloyd's City Risk Index 2015-2025

Read more:  One of the world's most liveable cities