Northern Territory leads economic growth across nation with 5.3 per cent increase in state final demand

The Northern Territory has recorded the biggest jump in economic activity in the nation, smashing out other jurisdictions on a key economic measure

THE Northern Territory has recorded the biggest jump in economic activity in the nation, with growth more than double that of any other state or territory in the June quarter.

The Territory’s state final demand, which measures the total value of goods and services that are sold, increased by 5.3 per cent to $6.5b, following a decline of 2.2 per cent in the previous quarter.

The new figures, released Wednesday by the Australian Bureau of Statistics (ABS), show the next highest growth for a jurisdiction, NSW, achieved a more modest rise of 2.2 per cent, which was recorded prior to the latest Covid-related hit to its economy.

The Territory’s mining and petroleum sectors have underpinned much of the NT’s growth, while household consumption also grew strongly in the June quarter as a result of a resurgence in tourism and ongoing consumer confidence.

A leading NT economist said the growth in economic activity confirmed the Territory is well on the way to recovery after reaching a 10-year low point in the June quarter last year.

“The strong economic growth trend is very encouraging for Territorians and Territory businesses,” he said.

The economist predicted more strong results for the Territory to aid its economic recovery.

“I expect growth to continue, driven by even more private sector investment that’s in the pipeline, plus defence spending,” he said.

Chief Minister Michael Gunner extolled the promising ABS release, pointing to a priority on safety and a “can do” culture as the impetus behind the growth.

Chief Minister Michael Gunner has praised the government’s ‘can do’ culture in helping grow the economy. Picture: Glenn Campbell

“These numbers confirm what we know – the Territory is leading the comeback,” he said. “We’ve been the safest. We reopened first last year, and this year we’ve taken the same urgency to the economic crisis and we have to the health crisis.

“Staying safe, staying open and implementing a ‘can do’ culture has helped us grow the Territory by more than 5 per cent in the past year.

It’s important now that we keep leading the comeback and keep being the best. Our fiscal strategy is simple – control the virus, grow the economy, repair the budget.”

The Australian economy grew by 0.7 per cent for the June quarter.