NOVEMBER 2016 Scope: This monthly newsletter By David Martine, Secretary, Department of Treasury and Finance outlines economic and financial developments in Victoria, nationally and globally. Domestic developments Highlights The Victorian economy (GSP) grew by a strong 3.3 per The US presidential election dominated news and markets cent in 2015-16, the highest since 2007-08, according to in November. the 2015-16 State Accounts. The report showed that Victoria continued to grow faster than the previous In Victoria, national accounts data showed Victoria grew by financial year and growth remains above trend. 3.3 per cent in 201516. Victoria’s annual growth rate was second to New South Growth in economic activity Wales in 2015-16 with growth was faster of 3.5 than per the cent. pace recorded in 201415. Key influences in driving Victoria’s economic growth were increases in dwelling investment of 11.1 per cent, GSP per capita increased by 1.4 per cent in 201516. underlying business investment by 4.0 per cent and household consumption by 3.2 per cent. The growth in Victoria added 20,500 jobs in October, with the dwelling investment was driven by construction activity in unemployment rate edging down to 5.7 per cent. a number of large multi-story residential towers. Net exports detracted 0.3 percentage points from Victorian economic growth in 2015-16. While growth in exports was positive, it was outweighed by an even stronger increase in imports. Service exports reached a record high of $16.5 billion in 2015-16, driven by international education, and tourism. GSP growth was above estimated population growth in 2015-16, and GSP per capita increased by 1.4 per cent, the highest since 2007-08. Looking forward, Victorian GSP growth is expected to remain above trend, with the low Australian dollar assisting the State’s competitiveness and major transport infrastructure projects proceeding.
NOVEMBER 2016 Scope: This monthly newsletter outlines economic and financial developments in Victoria, nationally and globally. By David Martine, Secretary, Department of Treasury and Finance Highlights The US presidential election dominated news and markets in November. In Victoria, national accounts data showed Victoria grew by 3.3 per cent in 201516. Growth in economic activity in 2015-16 was faster than the pace recorded in 201415. GSP per capita increased by 1.4 per cent in 201516. Victoria added 20,500 jobs in October, with the unemployment rate edging down to 5.7 per cent. Domestic developments The Victorian economy (GSP) grew by a strong 3.3 per cent in 2015-16, the highest since 2007-08, according to the 2015-16 State Accounts. The report showed that Victoria continued to grow faster than the previous financial year and growth remains above trend. Victoria’s annual growth rate was second to New South Wales with growth of 3.5 per cent. Key influences in driving Victoria’s economic growth were increases in dwelling investment of 11.1 per cent, underlying business investment by 4.0 per cent and household consumption by 3.2 per cent. The growth in dwelling investment was driven by construction activity in a number of large multi-story residential towers. Net exports detracted 0.3 percentage points from Victorian economic growth in 2015-16. While growth in exports was positive, it was outweighed by an even stronger increase in imports. Service exports reached a record high of $16.5 billion in 2015-16, driven by international education, and tourism. GSP growth was above estimated population growth in 2015-16, and GSP per capita increased by 1.4 per cent, the highest since 2007-08. Looking forward, Victorian GSP growth is expected to remain above trend, with the low Australian dollar assisting the State’s competitiveness and major transport infrastructure projects proceeding.
Economic%20Update%20November%202016.docx