Victorian Economy Recovering From Impact Of Global Financial Crisis

New economic growth predictions released by the Brumby Labor Government today show the Victorian economy is slowly heading towards normal levels of growth demonstrating the ongoing impact of the Global Financial Crisis.

Releasing the Budget Update today Treasurer John Lenders said while the Government had helped Victoria to weather the Global Financial Crisis better than almost anywhere else in the world there was no doubt every economy around the world would continue to experience economic aftershocks for many months if not years to come.

“A small turnaround in economic growth and a slightly higher surplus than forecast is evidence that our plan to stimulate the Victorian economy in partnership with the Rudd Government is working,” Mr Lenders said.

“While Victoria’s economic growth is now forecast to be 1.5 per cent this financial year it is still 1.5 percentage points lower than predicted before the impact of the Global Financial Crisis.

“We have invested a record $11.5 billion in job-creating infrastructure this year to create and secure 35,000 Victorian jobs this year.”

Mr Lenders said there had been a high level of volatility in economies around the world but the Brumby Labor Government had been fairly accurate with its economic predictions in May and there were only minor revisions in the forecasts released today.

He said Victoria had the strongest finances of any state with surpluses predicted both now and into the future, and a triple-A credit rating.

“Our relatively strong budget means we have been able to stand up for Victorian jobs by investing in job-creating projects like the Regional Rail Link, the Parkville Comprehensive Cancer Centre and local projects at schools right across the state,” Mr Lenders said.

“We are providing strong leadership in difficult times to protect as many Victorian jobs as possible from the ongoing impact of the Global Financial Crisis.”

Mr Lenders said that the revised surplus for this financial year was still $589.1 million lower than predicted in May last year before the impact of the Global Financial Crisis had hit government revenue.

Mr Lenders said the Brumby Labor Government’s plan to raise the borrowings needed to fight the Global Financial Crisis and invest in job-creating infrastructure had worked and now that the economy was heading in the right direction net debt was on the way down.

Mr Lenders said Victoria’s unemployment rate of 5.7 per cent was lower than Australia (5.8 per cent), New Zealand (6.5 per cent), the UK (7.8 per cent), France (10 per cent), the USA (10.2 per cent) and Spain (19.3 per cent), showing that the early action to fight the Global Financial Crisis taken by the Brumby Labor Government and the Rudd Government had saved Victorian jobs.

Topics: Australia, economic development, economic growth, economic recovery, global financial crisis, Governance, Rudd Government, stimulus, Victoria

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