Victoria is a state in the south-east of Australia. Victoria is Australia's most densely populated state and its second-most populous state overall. Most of its population is concentrated in the area surrounding Port Phillip Bay, which includes the metropolitan area of its capital and largest city, Melbourne, which is Australia's second-largest city. Geographically the smallest state on the Australian mainland, Victoria is bordered by Bass Strait and Tasmania to the south, New South Wales to the north, the Tasman Sea to the east, and South Australia to the west.
The economy of Victoria is highly diversified: service sectors including financial and property services, health, education, wholesale, retail, hospitality and manufacturing constitute the majority of employment. Victoria's total gross state product (GSP) is ranked second in Australia, although Victoria is ranked fourth in terms of GSP per capita because of its limited mining activity.