SA ECONOMY HOOKED ON GOVERNMENT SPENDING UNDER LABOR

Today’s National Accounts data should concern every South Australian.

According to the Australian Bureau of Statistics, South Australia’s state final demand increased by just 0.5 per cent in the March quarter, but the figures show growth is being driven by government spending rather than a strong and expanding private economy.

Government consumption rose by 0.7 per cent and public spending increased by 4.9 per cent. In contrast, private investment fell by 1.7 per cent, including a 5.0 per cent decline in dwelling investment and a 3.3 per cent fall in machinery and equipment investment.

“This is not a story of aspiration or hope, these are signs of a South Australian economy becoming more dependent on government expenditure while private sector confidence weakens under a state and federal Labor Government with no solution,” Senator Liddle said.

“The decline in dwelling investment is particularly concerning at a time when housing affordability remains one of the biggest challenges facing South Australian families.”

The national picture is equally troubling. Australia’s economy grew by just 0.3 per cent in the March quarter, while the working-age population grew by just over 0.6 per cent.

“Australia is adding workers faster than they are adding economic output. No wonder so many people feel like they are working harder just to stand still,” Senator Liddle said.

“Strong and sustainable economic growth comes from private investment, productivity improvements, business confidence and home building, not from ever-expanding Labor Government spending.”

“South Australians deserve an economy driven by enterprise, investment and opportunity. Not one increasingly reliant on taxpayers to generate growth.”