Victoria has become Australia’s most powerful economy
Victoria surpassed New South Wales to become the “nation’s leading state” based on CommSec’s strength and economic strength ratings.
For the first time in four years at the forefront of New South Wales, Victoria has emerged victorious as the state with the strongest economy, marking for the first time in its history a leading position. the national economy.
But CommSec’s chief economist, Craig James, said the gap between the two states is still very small, with little difference in the past 12 months.
Growth due to population growth
One of the reasons for the decline in the New South Wales economy is that the housing market is showing signs of cooling, especially in Sydney. The Melbourne property market has so far been in a favorable position, largely due to the population growth in Victoria as well as the level of construction in the state.
The biggest contributor to the growth of the Victorian economy is man. Significant increase in population has created the foundation for economic growth. Many residents have moved to Victoria from other states or regions in Australia, including immigrants from overseas who have chosen Victoria as a settlement, which has increased the demand for housing, roads, This has led to the spurring of spending, the need to hire more workers because many businesses are in operation.
In general, this trend of growth is not only in Victoria in particular, but generally in Australia’s southeastern region, which is good, including the ACT and Tasmania.
Treasury Secretary Tim Pallas of Victoria says growth in the state is supported by public investment, as in order to address population growth issues, infrastructure needs to be addressed. invest.
It’s not to say that Victoria’s economy has grown at a level never before in the state, so it has to put all the signs of growth into the overall situation of the country for consideration.
“The economy is driven by the investment in roads, public transport, hospitals and schools, which makes us profitable,” said Tim Pallas.
The annual population growth in Tasmania is the strongest in the last eight years as many residents have chosen to move to the island due to reasonable home prices and more relaxed lifestyles. So both Victoria and New South Wales could drop out of oil positions in the not so distant future.
“If you look at the whole picture for a year or maybe two years, you can see the economy of ACT and Tasmania is slowly rising,” he said. However, the gap between Victoria and New South Wales over the economies of other states and regions remains quite large.
Queensland and South Australia are close behind, topping the top 4, but still in the top 2.
Northern Territory and Western Australia continue to outbid the rest of the country and the rest of the country, mainly due to the fact that large mining projects are still underdeveloped. However, James said the two regions have begun to reap some benefits from the recovery of commodity prices, attracting interest in exploration and mining.
Mining demand in Australia is still high, so prices will continue to increase, which will create more demand in the workforce.
Up to now, Australia has experienced 27 consecutive years of economic growth without any signs of recession.