BENDIGO businesses are likely to bounce back gradually despite reports Victoria's economy will recover quicker than any other state, a business leader says.
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Be.Bendigo chief executive Dennis Bice said businesses were experiencing a gradual recovery, but the effect of JobKeeper ending in March was still uncertain.
A new Deloitte report has forecast Victoria's economy will grow quicker than other state, despite suffering the worst downturn in Australia due to its second wave of COVID-19.
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Mr Bice said businesses were experiencing lots of activity at the moment, which would likely continue to build as confidence grew.
He said trade was strong for most sectors because more people were out and about.
Mr Bice said many businesses had a positive outlook, but it was critical people continued to spend locally.
He said recovery would likely depend on whether Victoria had any further COVID-19 outbreaks or restrictions, for Bendigo businesses.
The Deloitte Access Economics quarterly business outlook predicted 5.3 per cent growth in the Victorian economy during 2021. Queensland and NSW's economies are respectively expected to grow by 4.6 and 4.4 per cent.
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The report said Victoria's recovery largely reflected the depth of decline in the state's economy, which shrunk at twice the pace of the next-worst affected state.
It said fears Victoria's workers would suffer long-term scarring had eased, after the labor market increased by 4.8 per cent in the two months to November.
However it named the end of JobKeeper and other business supports, as well as continued international border closures as risks.
With AAP.
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