South Australia has slipped further back in the state-based economic rankings according to the latest CommSec State of the States report.

SA fell to seventh in the rankings on the back of underperformance in construction, retail spending, and home building and buying, despite maintaining a steady population growth in the midst of a downwards national trend.

Only Tasmania was ranked below SA, despite the island state displaying improved signs of a declining jobless rate and improving construction sector.

New South Wales maintained the number one ranking for the second quarter in a row, along with the Northern Territory on the back of huge resource projects.

Meanwhile, CommSec Chief Economist Craig James said the forecast wasn’t all doom and gloom for South Australia pointing out some of the positive indications on the horizon.

“People are still coming to SA, unemployment is holding up reasonably well and there is the potential for the rising population to boost retail spending,” he said.

“SA will continue to gain from events and festivals with events like the Tour Down Under really positive in attracting investment and people.”

Potential also exists for South Australia in the housing market, with rising prices in the Eastern states making Adelaide a more attractive option for investors and home-buyers.

Managing Director of Migration Solutions, Mark Glazbrook, said it was important for the State to emphasise its strengths when attempting to lure more people to SA.

“South Australia has plenty to offer prospective migrants, such as our low cost of living, a great climate and affordable housing prices,” he said.

“The increased vibrancy we’re seeing in the CBD following the redevelopment of Adelaide Oval, the construction of the footbridge and the laneway activation initiatives that have been undertaken by the State government also means that the lifestyle South Australians can expect to enjoy is fast becoming a major incentive to moving here, and is something we need to be promoting more heavily.”

Source: CommSec State of the States report

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