NT economy jumps to fourth place in latest CommSec report
The Northern Territory economy is sitting at its strongest position in nine years off the back of strong domestic spending and population growth, according to the latest CommSec State of the States report.
The Northern Territory economy is sitting at its strongest position in nine years off the back of strong domestic spending and population growth, according to the latest CommSec State of the States report.
The quarterly report attempts to find out which state or territory is Australia’s economic leader, based on eight indicators.
The NT is noted as “the big improver” in the report, jumping to fourth from eighth place for overall economic performance relative to long-term averages – its highest position since October 2016.
The Territory was ranked first on population growth, which at 1.3 per cent sits at 74.7 per cent above the decade average.
It ranked third for household spending, fourth for economic growth and unemployment, fifth for housing finance, second last for dwelling commencements and equipment investment, and last for construction work.
Western Australia remained the best national performer thanks to household spending, while the ACT and Tasmania lagged the bigger states and territories due to slowing public investment.
When looking at overall year end growth the picture is also positive, the NT coming in third, unchanged from the previous report.
CommSec suggests year end growth is a better measurement of performance for the NT economy, as its decade averages remain inflated due to the construction of the Ichthys LNG plant, which opened in 2018.
In terms of year-ended growth, the NT led the nation in economic growth (up by 5.4 per cent), dwelling commencements (up by 30 per cent) and housing finance commitments (up by 24.1 per cent).
It ranked third for household spending (up by 4.1 per cent), fourth for population growth (up by 1.3 per cent), fifth for employment growth (up by 1.4 per cent) and sixth for construction work done (up by 0.5 per cent).
The only indicator going backwards was equipment investment, which was down by a third.
On other indicators, the NT is also a frontrunner on annual house price growth, up 12.9 per cent this September – well above the second highest Queensland, which was 8.8 per cent.
Chief Minister Lia Finocchiaro said the report was clear evidence the Territory is charging ahead and outperforming expectations.
“Our economy grew by 5.4 per cent - the strongest in the country,” the Chief Minister said.
“We’re seeing population growth up 1.3 per cent, housing finance up 24 per cent, and new dwellings up 30 per cent. The word is out: if you want a great job, lifestyle and affordable housing, the Territory is where you need to be.
“We’re building a stronger workforce, unlocking regional growth and making the NT the best place to do business,”
Treasurer Bill Yan said the report shows the Territory is now firmly on the investment radar.
“The NT is a hot spot for housing and business investment. You only have to look at the property market to see confidence returning,” Mr Yan said.
“With major infrastructure projects in the pipeline, the nation’s most generous home builder grants, and a lifestyle most people only dream of - Territorians and investors alike have faith in the CLP to deliver.”
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