South Australia’s growth prospects will be boosted by increasing opportunities in health and aged care, ICT and food processing, as well as the super-growth sectors of agribusiness, gas, tourism, international education and wealth management. More importantly, these growth pockets are mainly in high job creating areas of the economy.
New research from professional services firm Deloitte has identified 25 sectoral hotspots, the ‘Deloitte Growth 25’ (DG25), with the biggest potential to lift Australia’s prosperity over the next 20 years.
The full release of Positioning for prosperity? Catching the next wave, the third in Deloitte’s Building the Lucky Country series, analyses growth prospects across all major parts of Australia’s economy and identifies some growth hotspots for South Australia.
A companion media release considers the national impacts of the DG25. However, Deloitte has also extended the analysis to each state. Deloitte’s initial analysis, focussed on just one fifth of the economy, found that whereas South Australia had missed out on many of the benefits of the initial phase of development in emerging Asia, it was well-placed to make the most of a set of coming opportunities in the ‘Fantastic Five’ super-growth sectors of agribusiness, gas, tourism, international education and wealth management.
For example, the initial exploration completed in the Arckaringa Basin suggests there may be an enormous shale oil gas opportunity in the area surrounding Coober Pedy. And mining-related construction won’t be going away, with rich mineral deposits such as the country’s largest iron magnetite resource on the Eyre Peninsula.
In the full report, Deloitte’s latest analysis has now sifted through the remaining 80% of the economy – after the current growth wave of mining and the ‘Fantastic Five’ – to identify 19 new growth pockets (seen in the table below).
South Australia Managing Partner of Deloitte, Jody Burton, noted: “While South Australia has had to grapple with some bad news of late – such as the foreshadowed closure of Holden’s manufacturing operations at Elizabeth – the domestic-based sectors that Deloitte ranks as having the highest growth potential in the nation are a larger part of the local economy than they are of Australia’s as a whole.”
In particular, Deloitte’s new report identifies a growth cluster at the heart of the collision of megatrends such as rising life expectancies, rising relative health care costs and tightening public sector health budgets. This group contains the biggest sectoral opportunities – both nationally and for South Australia.
Click here for a copy of the media release.
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