Northern Territory economy grows 1.0 percent defying projected downturn
The Territory economy has defied a forecast downturn with the mid-year budget report showing it instead continues to strengthen following solid population growth and mining investments.
The NT mid-year budget report shows the Territory economy continues to strengthen following solid population and revenue growth.
The Territory was noted as the big improver in the latest CommSec State of the States report, released last month, and that growth has been further reflected in the budget report.
The report showed the CLP’s first budget has delivered significant improvements and highlights a range of positives led by an increase in GST and an uptick in own-source revenue as the economy grows 1.0 per cent.
Forward estimates show net debt has improved by $387m to 2028-29 while total revenue has increased by $617m owing to population and economic growth.
Meanwhile, private investment has grown by 4.1 percent, following strong expenditure in the mining industry and there is an increased payroll revenue of $11m.
Population growth was at 1.3 per cent, which ranked the NT as first in the country in the CommSec report.
As a result, the fiscal balance is projected to improve in aggregate by $369 million across the budget cycle.
NT Treasurer Bill Yan said the result showed the NT government was delivering on its promise to rebuild the economy.
“We are continuing to turn debt, deficits and mismanagement inherited from Labor into an economy that’s heading in the right direction,” he said.
“With a reduction in the net debt we are accumulating, we’re borrowing less to fund essential services and putting the taxpayer in a better position.”
It comes after the Department of Treasury and Finance initially forecast a fall of 2.6 percent following growth periods of 1 percent in 2024-25 and 0.8 percent in 2023-24.
Chief Economist Cherelle Murphy said the Northern Territory’s growth in 2024-25 was in line with most other states and territories.
“The Northern Territory Treasury expects GSP to increase by 7.8 per cent this year, driven by an improvement in LNG and manganese exports,” she said.
“Further growth of 5.9 per cent is forecast in 2026-27 as production at Darwin and Ichthys LNG plants reach full capacity.
“Looking forward, the mining industry will be a clear focus for the Northern Territory’s economy with a number of major projects on the horizon.”
Further confirming the NT’s economic turnaround, Moody’s credit rating agency, who rate 90% of the world’s public debt, gave the NT’s borrowings a stable outlook.
The Business Council of Australia has the NT ranked third best place to do business and CommSec gave the NT its best overall ranking in nine years.
Mr Yan said the government’s Rebuilding the Economy strategy was driving results across industry, population and employment.
“We remain committed to outpacing the nation in economic performance by harnessing the Territory’s natural strengths, and ensuring all Territorians benefit,” he said.
“This is what the Finocchiaro CLP government was elected to do, returning the NT to a place where more people want to live, work, visit and invest.”
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Originally published as Northern Territory economy grows 1.0 percent defying projected downturn
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