27 April 2010

South Australia economy well-positioned for sustained growth

The South Australian economy has momentum and will continue to experience growth over the next two years, two economy reports have confirmed.

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The South Australian economy looks well-placed for growth in the next two years.

The first report by Access Economics says South Australia is quite well-positioned economically, despite the risks to the economy posed by the manufacturing and farm industries.

The second report, on business confidence by PricewaterhouseCoopers, confirms that 56 per cent of South Australian businesses met or exceeded targets in March, although average profit growth and sales growth have dropped in the past 12 months.

Population gains in the state, due to Australian immigration and natural population increase, are the best since the early-1970s. Unemployment rates are near a record low in the state.

PricewaterhouseCoopers partner Michael Browne says private businesses in the state have been performing strongly over a considerable period, which gives the potentially false impression that growth is slowing.

"South Australia is in good shape. It has come back to the pack after a strong period of sustained growth and consolidation," he said.

Projects in the natural resource sector in South Australia, including the expansion of the Olympic Dam mine, will also help improve the economic outlook as the state looks to move from a major manufacturing state to a resource region.

Housing demands in the state have also been gathering pace, with housing and building industry expected to see a healthy year or two ahead.

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