South Australia has cemented its position as the nation’s strongest-performing economy, leading the country in State Final Demand growth and earning top marks from major economic assessors.
New figures from the Australian Bureau of Statistics show State Final Demand surged by 3.6 per cent through the year to September, outpacing Australia’s national Domestic Final Demand growth of 2.6 per cent.
The Business Council of Australia has once again named South Australia the best place to do business, awarding the state the top ranking in its Regulation Rumble report for the third consecutive year. This aligns with the latest CommSec State of the States report, where South Australia placed third overall and led the nation in Construction Work at 21.9 per cent above the decade average, and in Economic Growth at 8.7 per cent above the long-term norm.
Further confidence has come from the ANZ Stateometer Report, which describes South Australia’s performance as “robust” relative to the state’s historical trend. BankSA’s State Monitor shows consumer confidence at a four-year high, while NAB’s Quarterly Business Survey reported the strongest business conditions in the country during the September quarter.
Employment continues to grow, with the state reaching a record 986,500 people employed as of October 2025 – an increase of 86,100 jobs since the 2022 election. Confidence in the property sector is also soaring, with the Property Council ranking South Australia number one in the nation in September 2025.
Housing activity remains a major economic driver. In October, building approvals climbed 13 per cent over the year, totalling 14,878 new homes – a 24 per cent rise compared to the previous year. South Australia has also held its position as the lowest-taxing state on the mainland, according to per capita tax revenue data in state budget papers.
Tom Koutsantonis said, “We’ve already seen strong performance this year in State Final Demand, but the figure growing by 3.6 per cent through the year to the close of the September quarter makes it the strongest in the nation – well outpacing national growth.”
He said, “This is just the latest in a series of positive endorsements for South Australia’s economic direction, with a record number of South Australians in jobs in the previous month, a spate of major banks giving us a strong tick of approval and the national Business Council of Australia again endorsing our state as the best place in the nation to do business.”
He also highlighted the government’s focus on new housing stock, saying, “It’s significant to see economic growth strongly on the back of big investments in residential construction, after the Malinauskas Government has focused strongly on addressing housing supply.”
Koutsantonis added, “This is yet another a strong indication that we are in a robust position to weather economic challenges, but it shows why South Australia simply can’t afford to risk a Liberal State Government.”
South Australia continues to emerge as a confident, growing and resilient economy, with strong signals pointing to sustained momentum into the year ahead.
For more info, visit the Australian Bureau of Statistics website here.
