THE South Australian economy will continue to grow this year as it has for the past decade, Premier Jay Weatherill says.
Brushing off grim spending figures and opposition suggestions the economy is in recession, Mr Weatherill said SA's finances remained robust.
He said some sectors of the economy were soft, but government measures to support areas such as housing construction were paying dividends.
"We have grown every year for the past 10 years," the premier told reporters on Wednesday.
"Last year we grew by 2.1 per cent and we expect to grow this year as well."
Opposition treasury spokesman Iain Evans raised the recession question after the state's final demand figures retracted over the past two quarters.
He also pointed to falling exports.
"On all the key economic measures South Australia has gone backwards for two consecutive quarters in both trend and seasonally adjusted terms," Mr Evans said.
"How would the premier define a recession?"
But Mr Weatherill said final demand figures only measured a portion of economic activity and the state's overall performance was best measured in terms of gross state product which was only calculated at the end of the financial year.
In the recent mid-year budget review the government forecast the economy to grow by 1.75 per cent in 2012/13, down from the May budget forecast of 2.5 per cent.
On other matters, Mr Weatherill has given some support to a call from independent MP Bob Such for all government agencies to be subject to an efficiency and effectiveness review ahead of the next state budget.
"That's a worthy thing to give some consideration to," he told state parliament.
Mr Weatherill said there had been a "pretty mindless" debate recently about the size of the public service when the real issue was its effectiveness.
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