Deloitte-Access Economics’ quarterly Business Outlook has suggested that South Australia’s economy would face challenges from Holden’s decision to quit manufacturing, but these should be considered as part of the bigger picture.
According to the ABC, the report found that the movements of the Australian dollar would have more of an impact on the state than the loss of automotive jobs.
Business investment remained strong and the state recently posted its best export figures.
According to News Corp, Chris Richardson from Deloitte Access noted, “More or less over the same period things were looking tougher for Holden, the Australian dollar went down.’’
“I would count that as a bigger positive for job prospects in South Australia than I would count Holden as a negative.
“The dollar was a big part of the problem, not just for Holden, but for other things from wine to even defence contracts.’’
The quarterly report said that growth would be weak, but not negative.
“The economy is already weak and the hit to it may be relatively concentrated in time, rather than spaced out over a number of years,” it reads.
A less optimistic piece of research released this month, commissioned by Adelaide University's Australian Workplace Innovation and Social Research Centre, predicted that the end of automotive manufacturing would be particularly painful for South Australia and Victoria.
Though it was criticised by some as alarmist, the research – first made public on a Lateline report on the end of Australian automotive manufacturing – tipped a loss of nearly 24,000 jobs in SA as a result, and a potential loss of $44 billion in overall national GDP.