Plunge in NT economy drives plea to reopen borders

AS our borders remain firmly closed, the Northern Territory economy has shrunk for the 10th quarter in a row and the most ‘significant blow’ is yet to come, new Australian Bureau of Statistics figures have revealed.

Nationally, GDP shrank by 0.3 per cent in the March quarter, prompting Treasurer Josh Frydenberg to confirm Australia’s economy was now in recession based on official treasury advice on what the June quarter will look like. Picture: AAP Image/ Lukas Coch

AS our borders remain firmly closed, the Northern Territory economy has shrunk for the 10th quarter in a row and the most “significant blow” is yet to come, new Australian Bureau of Statistics figures have revealed.

The NT was the second worst performer in the country in the March quarter, just as coronavirus was taking hold.

And the most “significant blow” is still to come at the end of the June quarter, the NT Chamber of Commerce said, warning it was not viable for businesses to open without interstate travellers being able to spend their cash in town.

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NT Chamber of Commerce chief executive Greg Ireland, who has called for the government to provide a date on when borders could open, said without spending from interstate the Territory would be in “a lot of pain, for a lot longer yet”.

Nationally, GDP shrank by 0.3 per cent in the March quarter, prompting Treasurer Josh Frydenberg to confirm Australia’s economy was now in recession based on official treasury advice on what the June quarter will look like.

“The June quarter, the economic impact will be severe. Far more severe than what we have seen today,” he said.

While the latest result is the first negative result for the nation since March 2011, the NT’s GDP has shrunk every quarter since September 2017.

NT’s state final demand fell by 1.2 per cent in the March quarter, a result that was better than only NSW’s 1.5 per cent fall.

The NT’s shrinking economy was in part due to an overall 7.9 per cent fall in private sector spending, including a 11.4 per cent drop in machinery and equipment spending.

Decreased petroleum exploration was a significant player in a 20.1 per cent fall in “intellectual property products”.

Household consumption fell 0.6 per cent.

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Mr Ireland said June quarter figures would show a “substantial fall” in household consumption and a surge in government spending. He said strong economic growth would be needed to help the NT get out of the recessionary trend.

He said a border opening date in July was preferable as August was “too far down the track” for businesses.