Melbourne has become one of the fastest-growing cities in the developed world, racing away from the rest of Australia and doubling the rate of growth of most cities in advanced economies.

At 2.7 per cent last year, the city is growing at a rate usually associated with rapidly-expanding cities in China and South America - putting pressure on infrastructure and creating a political minefield for the Victorian and federal governments.

The city's surge past 5 million people has fuelled productivity-sapping transport and road bottlenecks in the CBD, frustrating commuters and hopeful homeowners struggling to get into the market.

Melbourne is one of the fastest growing cities in the developed world, according to population experts. Credit:Josh Robenstone

New figures released by the Australian Bureau of Statistics on Thursday show Melbourne grew by more than 2.5 per cent annually between 2011 and 2017 compared to 1.8 per cent for Sydney.