News: News and Highlights
Record decline in purchasing power for SA households
South Australian households have experienced an unprecedented decline in their purchasing power over the past year. In our latest Economic Briefing Report, SACES estimates that households’ gross disposable incomes on a real per capita basis fell by around 7 per cent in 2022/23. Consequently, households are finding it increasingly difficult to sustain their spending levels. This situation will continue to suppress household spending in 2024, which will lead to a slowdown in South Australia’s economic growth next year.
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SA household spending loses momentum as cost-of-living weighs heavy
Aggregate spending in South Australia has lost momentum over the past year as cost of living issues have weighed on household spending. Nonetheless, the State has enjoyed an especially strong recovery from the pandemic, and many areas of the economy are now operating at very high levels of capacity. These conclusions are contained in the latest Economic Briefing Report from the SA Centre for Economic Studies.
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SA economic growth to moderate as headwinds intensify and capacity constraints are reached
The latest Economic Briefing Report from the SA Centre for Economic Studies concludes that the SA economy will continue to expand in the new year, but at a slower pace. After two years of rapid growth, the state economy is now operating at a very high level of capacity utilisation with unemployment at low levels. Tighter financial conditions, cost of living pressures and high energy prices are all expected to have a dampening influence on growth in 2023.
SA economic recovery to continue despite cost of living crisis
South Australia’s economic recovery is set to continue despite inflation and rising interest rates putting increased strain on household budgets. But with household and public sector consumption expected to weaken, the State’s export performance will need to improve to compensate. These conclusions are contained in the latest Economic Briefing Report from the SA Centre for Economic Studies.
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SA economic recovery to continue but reopening no guarantee of economic windfall
South Australia’s economic recovery is expected to continue well into the new year. Recent strong growth in business investment, a backlog of construction work, and reopening of borders will support the ongoing recovery. But the economic benefits of reopening will be diminished to the extent that it leads to fresh COVID outbreaks and voluntary social distancing.
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Vale Professor Cliff Walsh
The staff of the South Australian Centre for Economic Studies (SACES) would like to acknowledge the passing of Emeritus Professor Cliff Walsh on the evening of the 7th of July in Melbourne.
Improving outcomes for young people transitioning to the workforce
Young peoples’ job prospects and mental health have been hit particularly hard by the coronavirus pandemic. With the momentum changes wrought by COVID-19, now is a good time to re-examine how we transition young people to the labour market.
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Regional Blueprint for South Australia
A new Regional Blueprint produced by Regional Development South Australia provides a strategic reference document for identifying regional priorities and infrastructure needs.
AI at Work: Tackling the work, health and safety ethics of artificial intelligence
Artificial intelligence (AI) is being increasingly deployed to drive innovation in products, production processes and service delivery. However, adoption of AI carries potential risks for workplaces and their clientele, including the potential loss of human life, with workplace health and safety implications. SACES, along with AIML and AITI, are hosting an open workshop to discuss and gain an understanding of the key ethical considerations for business in adopting AI technologies.
Bushfires and weather hurt SA tourism activity, while coronavirus dampens the outlook
Eighty per cent of South Australian tourism businesses were impacted by the recent summer bushfires, with a slight majority (51 per cent) reporting they have been impacted to a moderate or significant extent, the December 2019 quarter edition of the SA Tourism Barometer report shows.
