Baillieu Snoozes While Economic Clouds Darken
Further evidence of the challenges confronting the Victorian economy emerged today with the release of a new report.
The CommSec State of the States report is a quarterly analysis of eight key economic indicators, including economic growth, retail spending and unemployment.
The key indicators are compared with decade averages and disaggregated by state.
The report noted that investment in equipment was the biggest weakness in the Victorian economy.
Alarmingly, Victoria has the worst investment result of any state - only 8.8 per cent above ‘normal’ or decade-long averages, while Western Australia was 84 per cent higher, Queensland was 59 per cent, and NSW 28 per cent.
Over the year, Victoria was the only economy where investment actually fell – by 3.2 per cent – when investment in Western Australia, Queensland and Tasmania actually increased by over 40 per cent.
Shadow Minister for Manufacturing Adem Somyurek said the report was a clear warning sign for the Baillieu Government.
“The poor performance of the Victorian economy is masked by retail spending and the property market, but these sectors are already showing strong downturns,” Mr Somyurek said.
“These are alarming figures for Victoria’s manufacturing industry and a clear sign the Baillieu Government can no longer remain idle.
“This report paints a clear picture for the Baillieu Government, and again highlights that without a plan the Victorian economy will continue to slide backwards and more jobs will be lost.”
Manufacturing jobs have been lost or have been under threat across a range of organisations, including Alcoa’s Point Henry and the car industry.
“If the Baillieu Government wants to ensure tens of thousands of Victorians remain in manufacturing jobs they need to outline a jobs plan on how it will grow the economy,” Mr Somyurek said.
“Unfortunately, the only signal Ted Baillieu is sending investors is that the state is closed for business and that means more jobs will disappear.
“The Baillieu Government must use the State Budget as an opportunity to outline how it will revitalise Victoria’s economy.”