Victoria’s economy grew by just 0.3 per cent in the December quarter, the slowest growth rate among Australia’s states and territories, as private sector investment slumped by six per cent.

The economies of Western Australia and Northern Territory contracted, but all other states fared better than Victoria in the last three months of 2017, new data shows.

The soft economic performance would have been worse if not for the Andrews government’s huge construction program, which lifted the economy courtesy of an 11.7 per cent surge in spending on publicly funded infrastructure.

The first columns of elevated rail line through Melbourne's south east at Murrumbeena Station. Credit:Joe Armao, Fairfax Media.

The quarterly data, published by the Australian Bureau of Statistics on Wednesday, indicates that the government has become the heavy lifter of the state’s economy, while private investment has weakened.