The Centre for Economic Studies in South Australia has said that the state is experiencing its biggest downturn since recession in 1990.

Executive director Michael O'Neil has said that the total demand fell 2.6 per cent during the March quarter compared to the same quarter of the previous year. The export growth has slowed down and but the household consumption has shown signs of recovery.

"Certainly the contraction over the year suggests that South Australia is in a mild recession, but with some prospects of coming out of it. Public sector capital expenditure's declined, residential construction has been fairly subdued, the business investment quite subdued as I suggest in manufacturing there," he said.

Most forecast predict that the state will have slow growth this year but many believe that the economy might begin its recovery. Opposition Leader Steven Marshall said that the outlook is bleak and the state's economy is in recession.

Meanwhile, the authorities indicated that the South Australia's new brand with a the image of a doorway into the State will be managed by a new body and will integrate the Economic Development Board, business and media leaders in the state.