Victoria’s economy is forecast to be the fastest growing in Australia in 2021, according to a Deloitte Access Economics Business Outlook Report released yesterday.

The report estimates Victoria’s economic growth will hit 5.4 per cent this year, leading Queensland (4.7 per cent), New South Wales (4.2 per cent), Western Australia (3.5 per cent), South Australia (3.4 per cent) and Tasmania (3.4 per cent).

State treasurer Tim Pallas said the assessment was welcome news and supported economic indicators showing Victoria’s economy was rebounding.

Mr Pallas said the report reinforced the Government’s strategy of suppressing COVID-19 and rebuilding the economy.

The report said that overall, Victoria’s recovery to date had been remarkable. Few at the height of the second wave could have envisaged Victoria would begin 2021 in such a favourable position.

Victoria’s labour market has bounced back faster than Deloitte first anticipated, with employment increasing by 4.8 per cent in the two months to November.

The latest data from the Australian Bureau of Statistics also shows positive signs of recovery, with over 150,000 Victorians finding work in the last quarter of 2020. According to the data, employment increased by 74,000 in November on the back of an increase of 82,000 in October.

The forecast of a strong recovery after the pandemic restrictions follows the broad range of stimulus measures outlined in November’s State Budget.

"The Deloitte Access Economics Business Outlook Report suggests we’re on the right track, Mr Pallas said.