NT’s gross state product grew but underlying figures show economy is still in shambles

The NT’s economy is the fastest growing in Australia according to new data – but the figures under the surface paint a dark picture.

THE NT’s economy is the fastest growing in Australia according to new data – but the figures under the surface paint a dark picture.

The NT’s economy as measured by real gross state product - a broad measure of economic performance that includes exports - grew by 5.3 per cent in 2019/20 according to Australian Bureau of Statistics data, the best of any jurisdiction in Australia and the best result the Territory has had since 2012/13.

It’s a surge even larger than the 4.8 per cent predicted by NT treasury boffins in last week’s budget.

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But economist Saul Eslake says the growth in gross state product was due to a 33.8 per cent increase in exports, largely tied to Inpex’s Ichthys LNG plant moving to full production.

The average Territorian won’t benefit from a surge in LNG exports as profits are Inpex’s to keep. Agriculture exports, particularly when meat is processed or fruit and vegetables packed in the NT, would impact Territorians more due to its labour intensity.

When mining, which includes LNP production, is taken out of the frame the Northern Territory’s gross state product shrank 4.2 per cent last financial year and comes off the back of an 8.8 per cent decline in 2018/19.

How much Territorians are spending fell 3.6 per cent last financial year, the steepest drop in the country next to New South Wales where household consumption fell 3.7 per cent.

Housing investment fell 6.3 per cent in 2019/20, marking the sixth consecutive financial year decline and the eight in the last nine.

Mr Eslake said housing investment in the NT last financial year was the lowest it had been in 17 years.

“One bright spot perhaps is that Territorians are still relatively well off, on average, compared with other Australians,” he said.

Household disposable income per person in the NT was $67,704 in 2019/20 higher than anywhere else except the ACT where it was $92,810 and 32 per cent above the national average of $51,394.