Deloitte-Access Economics, one of Australia’s most distinguished economics advisory practises, has published a report stating that the effects of Holden’s forthcoming departure from the country have been exaggerated.
Deloitte’s report gave a more optimistic overview of the future prospects of the Australian manufacturing, which had been rocked by recent announcements for closures from some of the major players in the car industry.
The report said that South Australia posted record high exports in recent times and maintained strong business investments in the manufacturing sector.
The Deloitte quarterly report also found that retail turnover was improving in South Australia, but Rick Cairney, Director of Policy at Business SA, was not as convinced.
“The anecdotal evidence from our members particularly small business, bearing in mind that’s the overwhelming numbers in terms of employers in this state, is that business conditions are still very tough,” he said.
According to the article on ABC, the report said falls in the value of the Australian dollar would definitely influence South Australia’s economy more than the loss of jobs in the car making industry.
Mr Cairney said independent studies and a government report show job losses from Holden’s closure at Elizabeth in Adelaide will be significant.
“The estimated job losses they’re saying is only 2,000, now that’s quite different from the State Government’s own figures. Those sort of estimates have been 10,000-plus,” he said.