SA has second-best economy: CommSec, although concerns as well

CommSec has given SA a tick in its latest State of the State report, but it’s also found some worrying numbers.

Driven by a surging jobs market, South Australia’s overall economic performance was the second-best in the nation over the last three months, according to a new report from CommSec.

In its quarterly State of the States report released Monday, CommSec said SA trailed only Victoria in the overall economic performance stakes, which included a raft of measures including employment, construction, retail sales and population growth.

SA ranked third in the previous report.

However, in gloomier news, CommSec said Adelaide recorded the highest inflation rate in the nation at 5.9 per cent and ranked only fifth in economic growth, tallying 2.2 per cent, well below the top-performing Queensland which expanded its economy by 4.9 per cent.

CommSec, an arm of the Commonwealth Bank, said SA had the “strongest job market’’ in Australia.

“Trend unemployment in South Australia was at a record low of 3.7 per cent in September 2023, 38.9 per cent below the decade-average level,’’ CommSec said. It also said SA had the fastest job growth in Australia.

Treasurer Stephen Mullighan said there had “been enough jobs created under the Malinauskas Labor Government to fill Adelaide Oval’’.

“South Australia’s economy has been holding up remarkably well in comparison to the rest of the nation, despite interest rates starting to slow the national economy,’’ Mr Mullighan said.

“This is a good sign for the uncertain period ahead.’’

Treasurer Stephen Mullighan. Picture: NCA NewsWire / Naomi Jellicoe

The Treasurer warned though “record breaking economic and labour market figures are likely to soften over the coming months as the economy continues its slowdown’’.

That was a message reinforced by CommSec.

“Australia’s state and territory economies are slowing in response to higher borrowing costs and price pressures,’’ it said. “The future path of economies will depend on the response of inflation to higher interest rates.’’

Elsewhere, CommSec said SA was second in the nation for construction work, trailing only Victoria, with the total real value of residential, commercial and engineering work 15.6 per cent higher than the decade average.

Originally published as SA has second-best economy: CommSec, although concerns as well