The Victorian economy is gathering pace but more work still needs to be done, Treasurer Tim Pallas said today.

The CommSec State of the States report, which is produced each year and makes a comparison across states of economic performance, found that Victoria has risen to second place overall.

The report confirmed that Victoria has the fastest annual economic growth rate in the nation, up by 2.9 per cent on a year ago, ahead of Western Australia with 2.7 per cent and NSW, Northern Territory and the ACT (1.9 per cent).

It also showed that Victoria is gaining momentum through population growth and housing activity. Victoria now has the strongest annual population growth, with population 1.75 per cent higher than a year ago and a growth rate that is 2.2 per cent higher than the ‘normal’ or decade-average level.

The findings reinforce data released by the Real Estate Institute of Victoria (REIV) which showed that over the June quarter, Melbourne median house prices rose strongly to $706,000. This is an increase of 5.2 per cent over the quarter, and 6.3 per cent for the year.

CommSec’s findings are consistent with the latest Deloitte Access Economics Business Outlook report, showing that Victoria’s population is outperforming every other states. The report for the June quarter confirmed that the gap in economic activity is closing between the country’s mining and non-mining states.

Both reports indicate that a softness in the manufacturing sector is restraining the broader economy, underlying the need for the important measures being taken by the Andrews Labor Government.

This includes the $200 million Future Industries Fund, which will give grants of up to $1 million across six key emerging industries: medical technology and pharmaceuticals, new energy technology, food and fibre processing, transport, defence and construction technology, international education and professional services.

The Labor Government has also established the Premier’s Jobs and Investment Panel, an independent body of business and industry leaders who will provide advice on how best create high-skill, high-wage jobs.

Quotes attributable to Treasurer Tim Pallas

“This is a welcome scorecard on the Victorian economy. While there is still work to be done, it confirms that we’re moving in the right direction and picking up the slack left after four years of Liberal inactivity.”

“As economic and population growth gains momentum, we’re working to ensure that demand and activity spreads across our sectors to boost the whole economy.”

“Our forward-thinking initiatives like the Premier’s Jobs and Investment Panel will ensure Victoria can tackle the challenges ahead, and that we’re best placed to grab the opportunities of tomorrow, today.”