The South Australian economy has performed better over the past year than most people think, according to a report released in Adelaide today.

However, global factors – including Greece’s financial troubles – are creating an increased level of uncertainty for both the state and national economies, according to latest Economic Briefing report compiled by Adelaide University’s South Australian Centre for Economic Studies (SACES).

“While the Greek economy is small, this situation is already unsettling global markets and could cause significant disruption in Europe and the broader global economy, including Australia,” said Associate Professor Michael O’Neil, SACES executive director.

“Ongoing declining terms of trade, further falls in mining investment and a slowdown in the Chinese economy are also expected to continue to dampen the Australian economy over the next couple of years.”

Figures from the SACES report show economic growth in South Australia has been solid at 1.9 per cent over the year to the March quarter 2015, compared with 0.6 per cent over the previous year. Service exports also rose, and education exports reached a new high.

Report co-author Steve Whetton said the SA economy had “performed better over the past year than is popularly perceived”.

“Business investment in South Australia rose solidly, while household consumption expenditure grew, despite fragile labour market conditions. Residential building activity has also continued to grow.”

The downsides for the state were reduced engineering construction, and a 5.9 per cent drop in goods exports.

Nationally, the report shows growth in the Australian economy has been driven by a strong rise in exports, with help from the depreciation of the Aussie dollar, lower fuel prices and reductions in interest rates.

“However, we forecast that Australia’s Gross Domestic Product will rise by only 2 per cent in 2015/16, which is less than Federal Treasury forecasts of 2.75 per cent,” O’Neil said.