In 2018-19, the last full financial year before the pandemic, Victoria's economy was growing strongly at 3.1%.
Like so many economies around the world, however, COVID-19 had a serious economic impact.
Throughout the pandemic we acted decisively, putting in place vital public health measures that kept Victorians safe – and secured a stable foundation for recovery.
As a result of these measures, and the sacrifices of Victorians, we are now in the enviable position of easing restrictions and rebuilding our economy.
In fact, Victoria’s economy is already rapidly recovering, with strong economic growth of 6.5% forecast for next year.
Employment in Victoria has also rebounded, and workforce participation is at an all-time high.
More than 200,000 jobs have been created in Victoria, well ahead of the interim employment target in the Government’s Jobs Plan, announced as part of the 2020/21 Budget.
That’s more than 200,000 Victorians who now have the security and certainty of a job.
Women, who bore much of the economic brunt of the pandemic, have been employed in the majority of these new jobs, and employed particularly in professional services, retail trade and hospitality.
Young people were also among the hardest hit by the pandemic, with employment for those under 30 falling by 15% between March and September 2020.
In good news, we are now seeing the proportion of young people in work returning to pre-pandemic levels.
Regional employment is also strong. More than 74,000 jobs have been created in regional Victoria since November 2014 – the fastest growth rate of all the states. We aim to continue this success.
At the same time, we understand that our investments must continue to be strategic and smart.
It’s why this Budget focuses on the fundamentals by building infrastructure and investing in services – but also building and investing in opportunity as well.
Not only supporting Victorians in the short term, but actually investing in their future too.
That means investing in our state's future – and with it, driving the creation of a smart and modern economy.
That includes establishing Victoria’s capability to manufacture mRNA vaccines, new support dedicated to the professional development of our teachers and transforming the General Motors Holden site at Fishermans Bend into a global innovation hub.
These are investments that will not only support Victorians in the short term, but actually invest in their future too.
Victorian economic forecasts (%)
Sources: Australian Bureau of Statistics; Department of Treasury and Finance
Victorian employment is rapidly rebounding
Source: Department of Treasury and Finance
Reviewed 17 May 2021