SA’s economic recovery set to be stronger than forecast: ANZ

In a positive assessment of the SA State Budget 2021-22 and SA’s strong ongoing economic and jobs recovery, ANZ is predicting the state’s economic growth to surge even further beyond the level forecast by the Marshall Liberal Government.

In its assessment titled: SA Budget: frontrunner for a return to surplus, ANZ says despite the Budget’s predictions of 3.5% growth next year, “we are more optimistic at 4.5%”.

“SA’s economic outlook has improved, underpinned by a strong recovery in household consumption and growth in public investment,” ANZ said.

“GSP growth is estimated to rise to 3.5% in 2021-22 (down from a previous estimate of 4.25%). This is followed by stabilisation at 2.25% through 2022-23 to 2024-25. Our outlook is more upbeat: we expect GSP growth to accelerate to 4.5% in 2021-22, followed by 3.5% in 2022-23.”

This follows independent credit ratings agencies noting the state’s improving economic outlook, record infrastructure investment supporting job creation and strong financial management.

“South Australia benefits from a strong economy and financial management, which allow it to absorb some stresses on creditworthiness,” S&P Global said.

“The state so far has suppressed the spread of the virus, allowing its economy to open and budget to recover quickly. Its early success in containing outbreaks has supported a stronger economic recovery than otherwise would have been the case.”

Meanwhile, the state’s Chief Psychiatrist Dr John Brayley has welcomed the Marshall Government’s landmark $163.5 million mental health package which, he said, ‘responds to the Mental Health Services Plan which was consulted on and looks at international best practice’.

Leon Byner, FiveAA: “Has the budget addressed better our mental health needs?”

Dr Brayley: “Oh yes it does… it is a sizeable investment but it’s a one year (in) a five-year plan and there’ll be more that will need to come including more beds and we’re engaged in these discussions with the Commonwealth as well because we’re trying to implement the Productivity Commission, linking up with Commonwealth initiatives.”

The Independent Tertiary Education Council of Australia welcomed the Marshall Government’s “strong investment in skills” with combined state and federal support of up to $32,000 for new apprentices and trainees.

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