A new economic report puts the Territory last in key indicators

The quarterly CommSec back-and-forth has begun with the NT government denying the latest economic bad news. Read the latest.

The Northern Territory economy continues to lag behind every other Australian jurisdiction as voters prepare to head to the polls in August.

The latest CommSec State of the States report ranks the Territory economy dead-last in key economic measures including housing finance, construction and unemployment.

In the report released on Monday, for the first time South Australia was ranked the nation’s strongest, with Victoria and New South Wales equal second, followed by WA, Tasmania, the ACT, Queensland and the NT.

CommSec acknowledges shortcomings in the data it collects from the Northern Territory because its decade-long comparison coincides with a period of unprecedented economic activity during the Inpex construction.

However it is clear from the report the Territory is missing out on the economic growth coming from an explosion in national population growth.

“The economic performance of Australia’s states and territories is being supported by a solid job market and strong population growth, however the economies have slowed in response to rising interest rates, higher borrowing costs and price pressures,” CommSec chief economist Craig James said.

“For the first time in the history of our reports, South Australia has taken the lead. Population growth in South Australia has tripled over the past two years, which is showing up in a strong housing market and overall economic activity.

“We have also looked at annual changes in economic indicators as a useful measure of economic momentum and the report shows strong economic momentum by Western Australia, with Queensland, Victoria, NSW and South Australia not far behind.”

Economic growth was significantly weaker in the NT than nationally, coming in minus 2.2 per cent during the September quarter below its four-year average.

Next worst performing was WA which reported a 4.3 per cent increase.

The Territory also lagged the nation in retail spending (+0.5 per cent), equipment investment (-7.1 per cent), unemployment (7.4 per cent above the decade average), construction work (-43.9 per cent), housing finance (-3.7 per cent) and dwelling commencements (-54.7 per cent).

Acknowledging the variability of the NT’s figures in a small jurisdiction, CommSec gathers annual growth data figures which deliver better overall news.

On an annual basis the NT had the country’s strongest economic growth of 12.3 per cent and also highest equipment investment at 33.8 per cent.

Shadow Treasurer Bill Yan said the situation was made worse for Territorians by other cost of living increases including power prices climbing by $147 annually, the axing of the solar PV feed-in-tariff, a 2.7 per cent increase in power bills and 456 per cent increase in insurance compared to Adelaide.

Chief Minister Eva Lawler said CommSec’s report included the Inpex sugar hit.

“That was a $60 billion injection into the Northern Territory economy,” she said.

“CommSec isn’t really a clear indication of our economy because it covers those years where we had a really big sugar hit.

“Deloitte put out their report in the third quarter last year which showed our economy was the best across Australia, looking at growth of about 2.5 per cent.

“Until we flush through those years of Inpex, we will take it (the CommSec report) with a grain of salt.”