Australia's largest economic consulting firm Access Economics said South Australia must boost its mining industry if it wants to keep up with the economic development being enjoyed by other states.

In its recent Business Outlook report, Access said Australia's economy was able to withstand the global financial crisis almost unscathed and is still enjoying positive growth because of massive industrialization in China and other resource-hungry countries which depend on Australia's booming mining sector.

Over the past two financial years, South Australia's economy expanded faster than the national average. Many analysts predict South Australia can sustain this growth within the next two years. Unemployment in the state is also near record low.

Access said in its report, "The commodity cream ahead means development will gather pace and hence Western Australia, Queensland and the Northern Territory will muscle their way back to the top of the state growth ladder."

"The state is relatively well positioned to ride the recovery despite its high-profile exposure to manufacturing and farming-related risks in an environment of high exchange rates and rising interest rates."

However, Access said that the surging Australian economy and the declining unemployment would keep pressure on the Australian dollar and the Reserve Bank of Australia to raise interest rates.

South Australia Treasurer Kevin Foley attributed the state's growth to its investments in defence, renewable energy and mining.

Foley said in a statement, "Despite our export performance which has been hit by falling car exports and a high Aussie dollar, the rest of the economy has continued to grow strongly. Also, our strong population growth is bringing workers and capacity into the economy to underpin future growth."

But opposition treasure spokesman Iain Evans criticised the government for focusing on defence spending. Instead, the state should refocus its resources in developing the mining sector.

He warned that other states can run past SA if the state would not convert mining explorations to mining production.