Financial fallout’s impact revealed Crisis ‘numbered’

Andrew Mathieson
IT’S official: the global financial crisis left Geelong’s economy injured but without scars for life.
Latest figures reveal how the crisis hit several key indicators critical to the region’s prosperity during the last financial years.
But signs from a resilient property market hinted the economic impact would fade soon.
According to City of Greater Geelong’s annual economic indicators bulletin, unemployment soared from 3.8 to 6.5 per cent in the region after the financial crisis.
The 13,200 jobless were the most in five years, up nearly 42 per cent on the previous year.
Job advertisements were down 30.5 per cent after increasing for the previous four years.
The rising unemployment rate was reflected in the building industry, with activity falling from a peak $1.1 billion to $960 million – a drop of 15.4 per cent – in 2008/2009.
Non-residential building activity dropped further but, despite the 23.4 per cent decline to $346 million spent on capital works, the figure was still the second highest on record.
Business lost faith in the economy, with money spent on projects down a significant 38.5 per cent, while government expenditure fell 22.7 per cent.
Home owners stuck by old properties, with a shift to renovations. The value of new dwelling approvals dropped 15.6 per cent but renovations rose 14 per cent.
Median house prices continued to defy the statewide figures.
A 7.2 per cent increase for the Surf Coast and six per cent for Queenscliffe were the region’s biggest gains. Geelong homes were steady on recent years’ figures, jumping 3.5 per cent to push the average house price to $287,000.
Rentals in the region also rose 8.3 per cent on average and six per cent in urban Geelong.
Gross regional product was up a further $900 million in 2009 to $11.4 billion.
Geelong exports grew 2.7 per cent but a seven per cent fall in imports cut trade into Geelong’s port to 10.4 tonnes delivered.
An 11.9 per cent jump in domestic day trips attracted 4.3 million visitors to the region.