Current economic developments
Victorian economy at a glance
Contributing to the world’s 14th largest economy, Victoria has long been a powerhouse of the Australian economy. With economic activity and full-time employment now well above pre-pandemic levels, the state’s strong performance has been demonstrated by a $474 billion Gross State Product (GSP) in 2020-21.1
Victoria’s recent economic performance
- In 2022 was ranked as Australia’s best performing economy, leading the nation in both retail trade and employment.2
- Victoria’s annual rate of growth was one of Australia’s fastest at 6 per cent in March quarter 20223
- Victoria’s total value of goods and services consumption grew over 50 per cent faster than the rest of the nation in 2021 and at twice the level of New South Wales in the March quarter of 20221.
- Victoria accounts for 3 per cent of Australia's land mass and 23 per cent of Australia's total Gross Domestic Product (GDP)1
Strong performance forecast to outperform other economies
Victoria’s economy has experienced strong growth over the last decade and is forecast to grow by 3.25 per cent in 2022-231. Victoria’s performance is supported by the International Monetary Fund estimate of Australia’s annual growth of 4.2 per cent, outperforming other advanced economies that average a 3.3 per cent annual growth in 2022.4
Currently, at four 4 per cent, the state-wide unemployment rate is at its lowest since records began. The regional unemployment rate is even lower, sitting at 3.2 per cent. The Victorian economy’s strength is demonstrated through the creation of 200,000 jobs since the beginning of the 2020-21 financial year. Victoria is targeting to create 400,000 jobs by 2025.
The Australian Bureau of Statistics forecasts Victoria's population is projected to reach between 7.5 and 7.9 million people by 2027, representing a growth of up to 19 per cent from 2020 levels. Melbourne is predicted to be Australia's largest city in 2029-301.
Victorian Government is committed to an economy of the future
The State Government of Victoria
n is committed to attracting and retaining the global know-how to create high-value jobs and infrastructure for current and future generations.
The Victorian Government has committed $90 billion to Victorian’s Big Build. It will be a major driver in economic and jobs recovery following the pandemic, delivering a pipeline of infrastructure projects for the next decade.
Other Victorian Government support initiatives include:
- an unprecedented $1.7 billion energy package creating renewable energy hubs across the state to meet our net-zero emissions target for 2050. Victoria was the leading state for large-scale wind and solar generation in 2021.
- Victoria’s biggest ever investment in science, technology and innovation through the $2 billion Breakthrough Victoria Fund.
- support for startups through the $20 million Equity Investment Attraction Fund announced in the 2022-23 Budget.
- financing for local businesses at the cutting edge of innovation and technology through the Venture Growth Fund.
- an R&D Cash Flow Loans program to ensure Victoria's economy remains attractive to international investors.
Victoria is open for business
International investment remains critical to securing the skills, capabilities and technology that will ensure Victoria’s long-term growth. That’s why we are committed to attracting the best global organisations, talent and capability to our state.
Find out more about Victoria’s:
For insights into how Invest Victoria has helped international businesses grow, thrive and become globally competitive download the International Investment Report 2021-22.
1. The Department of Treasury and Finance, https://www.dtf.vic.gov.au/2022-23-state-budget/2022-23-strategy-and-outlook
3. Australian Bureau of Statistics (ABS): Australian National Accounts: National Income, Expenditure and Product
4. The International Monetary Fund: https://www.imf.org/external/datamapper/NGDP_RPCH@WEO/OEMDC/ADVEC/WEOWORLD