Is Victoria the richest state in Australia?
Is Victoria the richest state in Australia? Not right now, and not by most of the usual measures economists use to compare states. Western Australia currently holds the title of richest state on a per person basis, thanks mainly to its powerhouse mining sector and strong export income. Victoria is still a big, important part of the national economy, but it is no longer near the top when you look at income per person or overall economic performance.wikipedia+2
How “richest state” is measured
When people ask if Victoria is the richest state in Australia, they are usually talking about:
- Total gross state product, which is the size of the state economy
- Gross state product per capita, which is income per person
- Broader performance indicators, like jobs, investment and population growth
Victoria has a large economy and accounts for a big share of Australia’s total output and population. However, when you adjust for population, Victoria’s income per person sits below the national average, and well below Western Australia’s. That gap has widened over the past decade, which is why some analysts now describe Victoria as sliding down the national economic ladder.johnmenadue+2
Where Victoria stands today
Recent numbers show Victoria’s economy is still growing, but more slowly than some of its rivals. Real gross state product has increased over time and the state has kept a relatively strong labour market, helped by population growth and service industries such as health, finance and transport. On the flip side, Victoria’s per capita income has gone backwards relative to the rest of the country, which means the average Victorian is falling behind peers in several other states.abs+4
Economic performance scorecards tell a similar story. In recent rankings of state economies, Western Australia topped the table, while Victoria landed in the middle of the pack rather than near the front. That does not mean Victoria is poor, but it does mean the state can no longer claim to be the richest or strongest economy in Australia on the numbers.abc+3
Policy choices and party views
Debates about whether Victoria is the richest state in Australia tend to spill into politics pretty quickly. The ALP usually leans into long term investments in infrastructure, health and education to rebuild growth and boost well being. The Liberal and National parties talk more about going back to basics, cutting costs, reducing taxes and unlocking private investment to lift productivity. The Greens argue that a truly strong economy has to be sustainable, with cost of living relief and secure green jobs at its core. One Nation puts the spotlight on debt, credit ratings and tax cuts as the path back to strength.
For Victoria, the opportunity is to mix smart public investment with genuine incentives for private sector growth, including innovation hubs and higher value industries. Handling state debt carefully, without hacking away at essential services, will also shape whether Victoria can climb back towards the top tier of Australian states in the years ahead