Global Turbulence Reverberates in Bendigo’s Local Economy

Bendigo’s local economy hit a notable low by July 2024, registering a Gross Regional Product (GRP) of $1.16 billion that month-a $28 million drop from earlier periods-and shedding 413 jobs in July alone, according to a July 2024 report on economic output[1]. This downturn marks the lowest point since the onset of the COVID-19 pandemic, underscoring ongoing challenges in a shifting global economic landscape.

Global Forces and Local Impact

The global economic context, marked by supply chain disruptions, fluctuating commodity prices, and evolving trade patterns, has played a significant role in shaping Bendigo’s economic trajectory. As international markets recalibrate, local business sectors confront ripple effects-from demand contractions to altered input costs-which have manifested in job losses and output declines at the regional level.

The healthcare sector, traditionally Bendigo’s largest employer, illustrates the pressures felt locally. While continuing to account for approximately 19.7% of total employment in the Greater Bendigo region, it experienced a sharp 14.9% drop in employment year on year to August 2025[2]. This decline reflects wider health system adjustments driven partly by global funding and workforce trends.

Local Growth Sectors and Development Projects

Not all sectors have been equally affected. Retail Trade and Construction stand out, enjoying employment growth of 32.9% and 9.3% respectively over the year to August 2025[3]. This expansion is buoyed in part by a strong pipeline of infrastructure and commercial projects within Greater Bendigo, which has a diversified economy valued at $9.89 billion and supporting 55,242 jobs[4]. Projections anticipate 11,655 new workers joining the region’s workforce by 2027, reflecting sustained confidence in local growth potential[4].

Infrastructure developments such as the recent completion of stage one of Prime Urban Group’s $55 million Prime Business Park in East Bendigo, with over 10,000 square metres of flexible workspace and capacity for 250 workers, illustrate this dynamic[1][10]. The precinct is nearing full occupancy amid ultra-low industrial vacancy rates of just 0.5%, far below Melbourne’s 2% average, highlighting strong demand for commercial and industrial space in the region[3][4]. Meanwhile, early-stage proposals, including a $12 million retail hub in Epsom and a four-storey office building with a penthouse in Bendigo’s CBD, indicate ongoing commercial confidence[6][7].

Adapting to a Service-Based Economy

Bendigo’s broader economic transition away from manufacturing toward a service-oriented model is also evident. Micro-businesses-those with 1 to 10 employees-have grown steadily by 2.3% over the past two years, particularly in suburbs such as Strathfieldsaye and Maiden Gully where startup activity increased up to 32%[5]. Small and medium-sized enterprises constitute more than 95% of registered businesses locally, often concentrated in hospitality, construction, professional services, and retail[5][12].

Government support mechanisms, such as the Victorian Government’s Small Business Bus offering free advice and assistance to local businesses, are part of efforts to stimulate entrepreneurial resilience in the face of ongoing global and national challenges[9].

While global uncertainties continue-from fluctuating oil reserves to geopolitical tensions-the local economy’s diverse sectors, ongoing commercial development projects, and growing small business community collectively position Greater Bendigo to navigate the headwinds.

Looking ahead, businesses and workers will need to stay adaptable to global conditions impacting input costs, supply chains, and workforce availability. Continued investment in flexible workspace and infrastructure in Bendigo helps create opportunities within the region’s expanding service and construction sectors. Local enterprises can benefit from leveraging government support programs and fostering innovation to remain competitive in a changing economic environment.