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CommSec report paints grim picture for NT economy

Quarterly data has delivered a painful snapshot of the NT economy. Read where we’re failing.

Western Australia gains momentum in CommSec’s ‘State of the States’ report

The Northern Territory economy has again placed eighth overall in the latest quarterly CommSec State-of-the-States report.

The report, which the NT government dismisses as not being a true reflection of the NT’s economic performance, has rated the NT economy last over all of the 2020s.

As well, it has ruled out any significant improvement in the Territory economy over coming months.

The December quarter report released on Sunday again puts the NT economy in eighth spot behind podium finishers South Australia, WA and Victoria.

For the first time CommSec was unable to split the next three jurisdictions with Queensland, Tasmania and New South Wales finishing equal fourth. The NT economy came home last.

Out of eight economic areas monitored, the Territory’s economy was the worst performing in six of those.

Most significantly, the report identified the NT recorded negative economic growth in the December quarter, down 0.5 per cent compared with a 9.1 per cent quarterly increase in SA and increases of more than 8 per cent in New South Wales, Victoria and the ACT.

Retail trade in the December quarter increased by just 0.5 per cent, the nation’s slowest increase and December quarter equipment investment also fell 0.4 per cent.

The Territory’s December quarter unemployment figure of 4.3 per cent is 14 per cent below the decade-long average and the Territory’s construction work index was down 40.1 per cent on the decade average.

The Territory’s annual population growth in the December quarter was 0.7 per cent, the country’s second slowest and housing finance in the December quarter was down 15 per cent, the only negative performance in the country.

Nationally, every jurisdiction reported a decline in dwelling starts, with the NT’s negative 60.9 per cent fall the country’s largest.

The Territory recorded a 0.4 per cent decline in house prices in March, the only fall in the country.

The report concluded the NT economy is unlikely to turnaround anytime soon.

“Looking ahead, South Australia, Western Australia and Victoria could conceivably take top spot in the next quarterly survey,” it said. “But apart from the Northern Territory, none of the

other states and territory can be ruled out given solid population growth and firm job markets.”

CLP Treasury spokesman Bill Yan said the Territory had been bottom of the CommSec table for the past five-and-a-half years.

“Given these disgraceful economic indicators, Territorians know Eva Lawler is taking them for fools with her falsehoods of better conditions,” Mr Yan said.

“The CLP economic plan focuses on making the Northern Territory a great place to live, work and invest. Our plan to kick start the economy includes slashing project approval times by 50 per cent, supporting small business, getting rid of Labor’s destructive hybrid mining tax and installing a Territory co-ordinator who will ensure projects are fought for, started quickly and completed on time.

“The Territory needs a government that will do things differently, get the spark back in the economy and work with Territorians, not against them.”

Chief Minister Eva Lawler said the government’s pursuit of long-term gas would deliver long-term economic benefits as well as major events and tourism.

“The CommSec report compares the Territory economy now against our historic economic boom during the Inpex construction phase - so the data needs to be examined carefully,” she said.

“I’m focused on backing the industries that get the Territory working and I’ll continue to work hard every day to support Territory businesses grow and attract new businesses to the Territory.”

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Original URL: https://www.ntnews.com.au/business/nt-business/commsec-report-paints-grim-picture-for-nt-economy/news-story/57953daed1d92b7519c056c15e367476