Read where the NT stands in the national economy

The latest economic data provides a grim outlook for the Northern Territory compared to the rest of Australia. But it isn’t all bad.

The Northern Territory’s economy remains the country’s weakest with home prices falling, dwelling starts plummeting, housing finance tanking and vehicle registration the nation’s lowest.

Construction work was 48.3 per cent down on the 10-year Territory average, housing finance was down 10.4 per cent, dwelling starts were down 51.4 per cent and home prices dropped 1.6 per cent in the September quarter.

CommSec’s quarterly state-of-the-states report has again identified the NT as Australia’s economic laggard and confirmed the economy is heading backwards with a 2.4 per cent decline in economic growth.

Released Monday, the study found the Territory’s economy came in eighth out of eight as Victoria, South Australia and New South Wales took the podium while Queensland, WA, Tasmania, the ACT and NT completed the field.

CommSec Chief Economist Craig James. PICTURE: JUSTIN BRIERTY

But in a sign business is benefiting from the additional billions being injected into the Territory by Defence, equipment investment in the Territory was the nation’s highest with a 26 per cent annual increase.

In a concession to the Northern Territory government, which has traditionally rejected CommSec’s economic assessments because it said the 10-year-measure used figures from the Inpex boom which was a unique economic opportunity, CommSec has also introduced annual comparisons.

Either way, the CommSec data showed the Territory economy was failing to thrive as it struggled to compete with the rest of the country for major projects and workers.

Despite the changes, the NT government dismissed the independent review.

“This has always been a deeply flawed report that does not accurately show how the Territory is performing compared to the rest of the nation - with comparing the Territory to the peak of the Inpex construction boom.”

CommSec chief economist Craig James said a positive from the latest report was the increase in population growth from 0.34 per cent last year to 0.85.

He also said the 3.9 per cent unemployment figure was in line with other jurisdictions.

Shadow Treasurer Bill Yan. Picture: Lee Robinson

“Population growth improved in recent quarter’s right across the nation including the Northern Territory,” Mr James said.

“What every economy needs is a driver of economic growth whether it’s a new project, more tourists coming through or more migrants settling.”

The report identified relative population growth as a strength, with retail spending a major weakness with just a 0.3 per cent increase in Territory retail spending in the June quarter.

The latest retail figures are expected to be released Monday.

Mr James said Victoria had overtaken Tasmania as the country’s best economic performer and held out hope for improvements in the NT.

“Tasmania’s been on top for the past four or five years but it’s run has now ended,” he said.

“These things have a habit of changing over time. If the NT Government can point to major projects that are going to be driving growth that will be encouraging for Territorians to hear.”

Shadow Treasurer Bill Yan said a CLP government would grow the economy.

“The Territory is going backward under Labor,” he said.

“After seven years of this Labor government, the Territory has more debt and the worst performing economy in Australia.

“With stagnant population growth, lack of investment in the housing market and poor consumer confidence, the Territory could be facing even stronger economic headwinds.

“The Treasurer’s only plan is to tell Territorians they’re better off when quite clearly they’re not.”