This section will look at the changes that have occurred within the Northern Territory’s (NT) economy over recent years. The annual size and growth of the NT economy is measured by its gross state product (GSP). From the GSP, quarterly estimates and analysis is provided for state final demand (SFD). This includes the NT's consumption and investment spending by people and households, businesses and Governments. GSP also tells us the value of NT goods and services exports and imports (net exports).
Key facts | Economic growth | State final demand | Household consumption | Public consumption | Private investment | Public investment | Net exports | Explanatory notes
Over the last 15 years the NT economy has experienced an ongoing pipeline of major project investments by both the public and private sectors, stimulating the expansion of the NT economy, exports and industries (Chart 1).
Key facts
- In 2021-22, the Territory economy increased by 4.7% to $26.1 billion.
- The Territory state final demand (SFD) increased by 7.7% to $27.7 billion over the same period, driven by increases in both consumption and investment.
- Net exports decreased by 4.8% to $7.8 billion in 2021-22.
Economic growth
In 2021-22:
- the NT economy increased by 4.7% to $26.1 billion, up from a decrease of 1.4% in 2020-21
- the NT recorded the third strongest result of the jurisdictions, with Victoria recording the largest increase, at 5.6% (Chart 2)
- the increase was driven by investment (up 22.7%) and consumption (up 3.8%) (Chart 3)
- net exports decreased by 4.8% with the 6.4% growth in total exports being offset by 48.5% increase in total imports
- NT’s GSP per capita increased by 4.6% to $104,506
State final demand
In 2021-22:
- the NT’s SFD increased by 7.7% to $27.7 billion, driven by increases in both consumption and investment (Chart 4). This was the best year-on-year result of the jurisdictions
- national final demand increased by 5.0%
- SFD does not distinguish between demand met by goods and services produced within the NT, or by goods sourced from interstate or overseas, therefore SFD is not a full measure of the economy, nor can it be used as a proxy for GSP.
In the June quarter 2022, NT’s SFD:
- decreased by 0.5% (seasonally adjusted terms) to $6.8 billion in the quarter, compared to an increase of 1.0% nationally
- reported the only decline of the jurisdictions, which otherwise ranged from an increase of 0.1% in Western Australia to an increase of 1.9% in New South Wales.
Household consumption
In 2021-22, household consumption:
- increased by 2.3% to $11.2 billion
- contributors included hotels, cafes and restaurants (adding 0.58 percentage points to SFD), transport (adding 0.47 percentage points) and recreation and culture (adding 0.28 percentage points) (Chart 5)
- this was partly offset by food (subtracting 0.13 percentage points) and alcoholic beverages and tobacco (subtracting 0.09 percentage points to SFD).
In the June quarter 2022, household consumption:
- increased by 1.4% (seasonally adjusted terms) to $2.8 billion in the quarter, compared to an increase of 2.2% nationally
- was driven by increased expenditure on transport and hotels, cafes and restaurants.
Public consumption
In 2021-22, public consumption:
- increased by 5.5% to $10 billion
- the increase was driven by both state and local consumption (up by 4.8%) and national consumption (up by 6.5%).
In the June quarter 2022, public consumption:
- decreased by 6.2% (seasonally adjusted terms) to $2.3 billion in the quarter, compared to a decrease of 0.8% nationally.
Private investment
In 2021-22, private investment:
- increased by 26.0% to $4.9 billion, reflecting a 35.5% increase in business investment, and a 29.9% increase in ownership transfer costs
- dwelling investments decreased by 13.0%.
In the June quarter 2022, private investment:
- increased by 5.2% (seasonally adjusted terms) to $1.3 billion in the quarter, compared to a decrease of 1.5% nationally
- was largely driven by increases in dwelling investment (up by 14.6%) and business investment (up by 3.9%).
Business investment
In 2021-22, business investment:
- was the main contributor to the increase for total investment, up by 35.5% to $4.0 billion
- the main contributors were non-dwelling construction (up by 61.9%), intellectual property products (up by 23.4%) and cultivated biological resources (up by 17.8%) (Chart 6).
In the June quarter 2022, business investment:
- increased by 3.9% to $1.0 billion in the quarter. This reflects increases in non-dwelling construction (up by 5.5%), intellectual property products (up by 9.0%) and cultivated biological resources (up by 13.2%), partly offset by falls in machinery and equipment (down by 7.3%).
Dwelling investment
In 2021-22, dwelling investment:
- decreased by 13.0% to $637 million (Chart 7)
- for more information, refer to the Housing page.
In the June quarter 2022, dwelling investment:
- increased by 14.6% to $165 million (seasonally adjusted terms) in the quarter, with a 20.0% increase in alterations and additions and a 6.8% increase in new and used dwellings.
Ownership transfer costs
In 2021-22, ownership transfer costs:
- increased by 29.9% to $256 million.
In the June quarter 2022, ownership transfer costs:
- increased by 4.4% (seasonally adjusted terms) to $71 million in the quarter.
Public investment
In 2021-22, public investment:
- increased by 13.7% to $1.6 billion, driven by a 15.4% increase in general government investment (Commonwealth and state and local related), and a 4.5% increase in public corporations investment,
- The Australian Bureau of Statistics (ABS) statistical treatment of state and local public investment is not comparable to NT Government expenditure published in the Budget Papers, however provides a representation of public investment relative to GSP. For more information, refer to the NT Government's finance papers.
In the June quarter 2022, public investment:
- increased by 4.2% (seasonally adjusted terms) to $369 million in the quarter.
Net exports
In 2021-22, net exports:
- decreased by 4.8% to $7.8 billion, reflecting a 47.6% increase in goods imports partly offset by a 6.6% increase in goods exports
- net exports of services decreased by $73 million to $174 million. This reflects services exports being flat at $357 million and a 66.4% increase in services imports to $183 million
- the latest monthly data published by the ABS within the ‘International Trade in Goods and Services’ release, shows the NT’s total balance of goods traded increased by 34.4% to $13.0 billion in the year to September 2022, driven by an increase in the value of exports. Further information on the latest results for the NT’s goods trade balance can be found at the International trade page.
Explanatory notes
- GSP represents the value of economic output in a state or territory’s economy and is published annually on the ABS website.
- GSP is calculated using three measures: income, production and expenditure. Headline GSP represents an average of the combined income, expenditure and production measures.
- The ABS also publishes quarterly estimates of SFD, a measure of domestic economic activity. However, this does not include demand for the NT’s goods and services from overseas, net interstate trade or changes in inventories. Therefore, the annual value of net exports are provided through the GSP release, though with monthly estimates available in the separate ABS publication in ‘International Trade in Goods and Services’. For more information, refer to the International trade page.
- Caution should also be noted when comparing data currently pushed to previous publications. Historical GSP data is often revised from year to year as a result of new information available to the ABS. Given the relatively small size of the NT economy, this new information and subsequent revisions can have a significant impact on the NT’s growth rates.
- For the latest available data and analysis, see the Department of Treasury and Finance’s GSP and SFD economic briefs.