CommSec report shows NT economy worst in Australia

THE Northern Territory now has the worst-performing economy in Australia, according to a grim CommSec report

Treasurer Nicole Manison delivering the 2018 Northern Territory budget to the chamber at Parliament House. The NT ranked eighth on six of a CommSec report’s eight economic indicators.

THE Northern Territory now has the worst-performing economy in Australia, according to a grim CommSec report.

The quarterly State of the States report released today shows the NT has dropped to the bottom of the league ladder, down from the seventh ranking in October 2018.

Chief economist Craig James said while Victoria and NSW won joint-first place for economic performance, the Territory lost ground to Western Australia this quarter in the comparison of the job market and construction work.

“The NT, like WA, is in the painful transition from what was the biggest resource boom that Australia has seen in a century,” he said.

“There was little to separate them in the last survey, but WA is doing well to diversify its economy with tourism and branching out their ag sector in areas like wheat.”

The state economic growth rankings, according to January’s CommSec State of the States report. Source: Supplied

The NT ranked eighth on six of report’s eight economic indicators (employment, retail spending, equipment investment, population growth, housing finance and dwelling starts) but ranked third on economic growth, up 23.5 per cent on the decade average.

The Territory recorded the country’s weakest result on retail spending, up 4 per cent on the decade average, as well as the weakest equipment spending, down 33 per cent on the decade average.

It also remained the weakest for housing finance with trend commitments 27.7 per cent lower than its decade average, as well as the lowest dwelling starts — 46.4 per cent below decade averages.

“The good news is that dwellings commenced in the Territory lifted in the September quarter after hitting near 30-year lows in the June quarter,” Mr James said.

“So it’s hasn’t been all bad and another encouraging sign was that exports are rising strongly in the NT.”

The annual growth rates of states and territories in the latest CommSec State of the States report. Source: Supplied

The Territory also saw the slowest annual population growth in the country, down 107.4 per cent on decade averages.

“The NT population shrank by 0.1 per cent over the past year,” Mr James said.

“This is the first time this has happened in 15 years and is clearly an important driver of the economy.”

All other jurisdictions recorded positive population change. Construction work done in the NT in the last quarter was also down 32.7 per cent on the decade average.

Originally published as CommSec report shows NT economy worst in Australia