Increase in state demand highlights Victoria for investment

An increase in state demand may encourage property investment in Victoria, with the Australian Bureau of Statistics' National Accounts posting strong numbers for the March quarter.

Victorian treasurer Kim Wells reported that state final demand has increased by 1.8 per cent over the March quarter and 2.7 per cent over the year.

"Victoria's growth over the last quarter was the strongest of all states except Western Australia which has been insulated by the mining boom," he said.

"This growth demonstrates the underlying resilience of the Victorian economy in the face of challenging global conditions."

Referring to financial challenges in Europe and a sluggish recovery in the United States, Mr Wells underlined the relatively positive state of Australia's economy.

Retail sales, transport services, entertainment and private business investment are just some of the contributors to the positive numbers posted in March.

"Despite the high Australian dollar, Victorian goods exports grew by 4.6 per cent in the last
quarter and more than nine per cent over the year," said Mr Wells.

The state treasurer also pointed out Victoria's comparatively good numbers to the rest of
Australia.