In an unprecedented development, South Australia's economy has been ranked number one in the nation by Commsec for the third time in a row.
CommSec's State of the States report shows SA topped the nation in three of the eight key indicators:
State of the States measure |
South Australia's ranking |
Job market |
Number 1 |
Construction work |
Number 1 |
Dwelling starts |
Number 1 |
It's a back-to-back-to-back result for South Australia, which topped the CommSec leaderboard for the first time ever in January.
The result has been driven by our strong job market and construction sector.
Commsec reports that trend unemployment was at 3.9 per cent in June 2024, 33.4 per cent below the decade-average level.
Construction work in SA is 15.6 per cent higher than the decade average level.
South Australia continues to lead the nation in dwelling starts. The Malinauskas Labor Government has implemented a comprehensive suite of housing policies and reforms since coming to office, including through the Housing Roadmap unveiled last month.
CommSec ranked Western Australia second overall, followed by Victoria, ACT, Queensland, Tasmania, NSW and the NT.
The report again noted that South Australia is "consistently strong" across most indicators.
South Australia has been outperforming the rest of the nation across a range of measures, including:
- Strongest economic growth of any state in 2022-23 – 3.8 per cent.
- Business Council of Australia ranking SA the best place in the nation to do business.
- Ranked first on the HIA Housing Scorecard.
- South Australia's unemployment rate remains near record lows.
South Australia's economic success has been supported through strategic government investment and solid budget management.
This has been recognised by international credit rating agency, Fitch, which has reaffirmed the state's strong credit rating at AA+, outlook stable.
Fitch notes:
"The affirmation is supported by South Australia's sturdy economic and fiscal performance following the Covid-19 pandemic, as the state continues to invest in productive measures to promote stability in the economy, provide cost of living support, and support key sectors, such as healthcare and education".
The rating agency also notes that the South Australian economy is low taxing, and competitive with other jurisdictions:
"The state maintains a low-tax environment, prioritising tax affordability for residents while ensuring the competitiveness of its tax system. This approach encourages inward investment and sustains a robust labour market".
As put by Peter Malinauskas
The independent evidence is clear. South Australia has an enviable position as the nation's economic leader, a position we had never held until this year.
We are number one for jobs. Number one for construction and number one for housing starts.
And despite international headwinds, we have so much economic opportunity before us.
This is underpinned by sound economic management, which has allowed us to deliver low taxes and budget surpluses.
I know many families are doing it tough in a high cost environment, but SA's strong economic position provides a strong platform for our future.
As put by Stephen Mullighan
South Australia's economy continues to outperform in the face of national economic headwinds.
As the nation's construction sector slows due to rising interest rates and labour and material shortages, South Australia has held up, supporting our labour market.
The release of the Malinauskas Government's Housing Roadmap should provide further confidence to a residential construction sector that is already outperforming the rest of the nation.
Fitch reaffirming South Australia's credit rating at AA+ recognises the responsible investment and budget management the Malinauskas Government has demonstrated across our first three budgets.
