Last year, Melbourne’s GDP of $304 billion represented almost 20 per cent of national GDP. Melbourne’s GDP growth rate of 4.4 per cent was the highest in over a decade. Melbourne contributed 28.4 per cent of national GDP growth, the highest in 25 years. Housing continued to drive rapid growth in the Real Estate Service and Construction industries, resulting in a booming housing market and GDP per capita reaching $65,400.
However this growth is not evenly distributed across Melbourne. While the Financial & Insurance industries based in the inner suburbs are thriving, traditional Manufacturing areas are struggling. Manufacturing’s share of Melbourne’s economy has hit a record low of 6.9 per cent as the full impact of the closure of the car manufacturing industry is felt. Regional Victoria is also being impacted by the closure of a number of manufacturers.
This changing economic structure is placing increased stress on our existing transport infrastructure as people travel longer distances to reach jobs and opportunities.
SGS has produced estimates of GDP for each region within Melbourne and the rest of Victoria to understand how each local economy is performing.
In the latest instalment of our seminar series, hosted in Melbourne, Terry Rawnsley and Sean Williams discussed Melbourne’s performance, explaining the drivers of the city’s success, the spatial divide and the implications for future growth.