Victoria recorded an increase in GSP of 5.6% in 2021-22, the strongest of any state and territory. The increase follows a fall of 0.3% in 2020-21 and small rise of 0.1% in 2019-20 when economic activity was constrained by pandemic containment measures. Leading the recovery were Construction GVA (7.6%), Health Care and Social Assistance GVA (6.6%) and Transport, Postal and Warehousing GVA (12.5%).
Construction activity rose across both residential and non-residential construction with strong demand from both private and public sectors. Dwelling investment was a major driver as the Construction industry worked thorough a backlog of projects from the COVID-19 disruptions of the previous year.
Health Care and Social Assistance continued to grow as output increased in response to COVID-19 challenges. The Delta and Omicron COVID-19 waves saw increased hospitalisations, testing programs and vaccine rollout drive public and private health services.
Transport Services rose in response to the removal of lockdowns and travel restrictions on Victorian households and business. Increased mobility throughout the state drove a rise in public transport services as well as toll roads.
Industries dependent on household spending rebounded in 2021-22 after two difficult years impacted by COVID-19 trading restrictions. Strong growth was recorded in Retail Trade GVA (8.8%), Accommodation and Food Services GVA (10.6%) and Arts and Recreation Services GVA (15.7%).