Construction investment surges

Submitted 4/02/2010

www.southaustralia.biz

An independent report shows business and government investment in South Australia is double that of the rest of the nation.

The Access Economics - Arup Investment Monitor, December 2009, shows South Australia is second only to Western Australia in annual growth in projects under construction.

According to the report, there has been an 88.9 per cent increase in projects under construction since December 2008, compared to a national average of 39.3 per cent. Western Australia experienced a 129.3 per cent increase.

In comparison, NSW recorded a 10.8 per cent decline in investment, Victoria minus 5.1 per cent, Queensland minus 0.4 per cent and Tasmania minus 18.2 per cent.

Treasurer Kevin Foley says this latest report again demonstrates the underlying strength of the South Australian economy.

The recent Access Economics' Business Outlook December Quarter 2009 report said South Australia survived 2008-09 better than much of the rest of Australia and predicted solid growth this financial year, and acceleration in growth to 3.7 per cent in 2010-11. 

Further, the Australian Bureau of Statistics noted that in contrast to the fall nationally, South Australian private business investment grew 9.7 per cent in the quarter, helping to propel State Final Demand growth to the highest quarterly and annual rate of all the States.