An economy with strong and consistent growth
Victoria represents 3 per cent of Australia's total land mass, accounts for 22 per cent of national GDP and competes with the largest economies in South East Asia.
For more than two decades, our economy has delivered strong and consistent growth supported by a diverse economy and a long history of prosperity across many industries.
The highest possible credit rating
For the past 10 years, Victoria has managed to retain a triple-A credit rating which is indicative of our consistently strong economic performance, sensible financial management along with Australia's extremely supportive institutional framework.
We have delivered 23 years of continuous economic growth and offer a safe, low-risk and stable investment environment.
The world's top performing companies
Melbourne continues to be the number one choice for a large number of both domestic and foreign-owned businesses. Six of the world's top 10 and 29 of Australia's top 100 companies choose to establish their headquarters and conduct their business in Melbourne above any other state in Australia.
Our economy has delivered strong and consistent growth for more than the past two decades, and while Victoria represents only 3 per cent of Australia's total land mass, we account for close to a quarter of Australia's economic activity (23 per cent of national GDP).1
Victoria is Australia's largest supplier of premium food and fibre products. In 2018-19, the state's total food and fibre exports accounted for 27 per cent of Australia's food and fibre exports. We export 77 per cent of Australia's dairy exports, 50 per cent of Australia's horticultural exports and 32 per cent of Australia's prepared food exports.2
Our international education sector is Victoria's largest service-based export.3 In 2018-19, education services increased by 17 per cent from 2017-18, and tourism spending increased by 12 per cent over the same period, indicative of a significant rise in international tourists and students choosing Melbourne as their premier destination to visit, live and study.4
Victoria's aerospace industry is a key supplier to the global aviation supply chain, and Victoria's transport equipment industry contributes approximately A$3.5 billion to the economy each year.
Victoria is one of only two Australian states to receive a triple-A credit rating from agencies Standard & Poor's5 and Moody's6 – a rating we've managed to maintain for the past 18 years and a reflection of our consistently strong economic performance that's delivered 27 years of continuous economic growth.
Taking into account the pandemic’s impact on the State’s revenues and new business and community support initiatives, the general government sector operating result in 2019-20 is expected to be a deficit of around $7.5 billion7. Despite this, expenditure will continue to flow to benefit Victorians in 2020-21, and the 2020-21 Budget will provide updated estimates aimed to:
- support our triple-A credit rating
- provide a stable taxation environment for Victorian businesses
- allow the government to expand its ongoing investment in world-class infrastructure.
We're also the number one choice for a large number of both domestic and foreign-owned businesses. Six of the world's top 10 and 29 of Australia's top 100 companies choose to establish their headquarters and conduct their business in Melbourne above any other state in Australia.8
- ABS 5220.0 Australian National Accounts: State Accounts Table 1. Victoria; Gross state product: Ratio 2018-19
- Source: Food & Fibre Export Performance Report 2018-19
- ABS International Trade in Services by State, Financial Year 2018-19, cat. no. 5368.0.55.033
- International Visitor Survey, Tourism Research Australia, December 2017
- Standard and Poor's Ratings Services, Ratings Direct, Victoria, August 2015
- Moody's Investor Services, Credit Opinion, Victoria, February 2016
- Source: Victorian Economic Update July 2020
- IBISWorld Top 2000 Companies Sept 2015