But the global financial crisis (GFC) was real, and would result in a recession in Australia, he said.
Mr Richardson, speaking at an Australia-Israel Chamber of Commerce lunch at the Hilton Adelaide yesterday, said the average Australian was actually better off since the GFC hit last October.
This was because of the impact of the Federal Government's stimulus packages, combined with lower interest rates and petrol prices.
But he warned the global recession had "unstoppable momentum" and Australia would also be pulled into recession this year. His talk preceded today's release of Dun & Bradstreet's national business expectations survey, which shows executives believe the coming quarter will be the most challenging since the start of the global financial crisis.
The ANZ employment series, which measures internet and newspaper job ads, released yesterday, added to the gloom, with employment advertising down 33.7 per cent from January last year. Ads fell 6.3 per cent seasonally adjusted in January, following a 10 per cent drop in December.
ANZ predicted unemployment could rise from 4.5 per cent now to 7 per cent by 2010.
Mr Richardson reiterated comments he first made last month, that South Australia would cope with the downturn better than other states.
But he warned that was only a relative measure, and the state would still "do it tough".
"On average, (SA is) going to be a good place to be," he said. "Does that mean you will be fine: no."
Mr Richardson said SA would be partially insulated from the global commodity price crash by its relative lack of dependence on mining, while the large contribution of manufacturing to the state economy posed the greatest risk.
"In 2010, I'm quite hopeful of a recovery," he said, "Having said that, this is very hard to forecast."
D & B chief executive Christine Christian, commenting on today's business confidence survey, said 53 per cent of firms expected sales to fall and 60 per cent expected a drop in profits in the June quarter. Almost 70 per cent of firms had been negatively impacted by the recent movements in the Australian dollar, up 56 per cent since July.
"Credit and financial risks have increased markedly since the global financial crisis fully erupted in October, 2008, and with the economy set to weaken further during 2009, cash-flow problems are becoming a significant burden," she said.
"There is no doubt businesses are facing a significantly heightened risk environment. As a consequence, an unwavering focus on business fundamentals and proper cash-flow management is absolutely critical to maintaining the sustainability of Australian firms."
