The latest Deloitte Access Economics (DAE) Business Outlook report released today for the 2014 September quarter continues to paint a dire picture of the South Australian economy.
The report notes:
South Australia’s economy is in the slow lane. More pain is on the horizon as it stares the closure of car manufacturing in the face …. The job market has been less than satisfactory. Worryingly, job vacancies continue to fall, and they are doing so at a relatively rapid rate, consistent with challenging conditions of the moment.”
The DAE Report forecasts that:
• SA’s economic growth will be the worst of all states and territories in 2014-15 and 2015-16;
• Tasmanian economic growth is forecast to outperform SA in each of the next five years;
• SA’s economy will grow at less than half the national rate over the forward estimates; and,
• SA’s economic growth forecasts in the State Budget are more optimistic than the DAE forecasts in every year of the forward estimates.
South Australia also recorded the worst jobs performance of all states in 2013-14, recording a 1.4 per cent decline.
“As South Australia continues to experience a dangerous jobs crisis, we are in grave danger of continuing to slip even further behind the rest of the country,” said Shadow Treasurer Rob Lucas.
“Under the Weatherill Labor Government, South Australia has the highest taxes in the nation, high debt and deficit, low consumer and business confidence and the worst performing workers’ compensation scheme.
“The Weatherill Labor Government needs to reduce the costs of doing business in South Australia, cut red tape and place a greater focus on exports to increase job opportunities.
“The Weatherill Labor Government has to become business friendly if we are going to make substantial inroads on South Australia’s 6.3 per cent trend unemployment rate.”