South Australian Business Outlook

Amidst a backdrop of global turmoil, broader economic headwinds and higher interest rates, the South Australian economy has proved relatively resilient in the first half of 2026. State final demand rose by 0.5% in the first quarter, consolidating the strong growth recorded throughout much of 2025. However, signs are also emerging that the state's momentum is beginning to soften. The tailwinds from public sector spending have continued to underpin economic growth within the state, with public gross fixed capital formation rising 4.9% in March, highlighting the ongoing importance of government infrastructure and capital investment. As this period of exceptionally strong public investment begins to mature, the outlook will increasingly depend on whether private sector activity can sustain its momentum.