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 2023-24, the Territory economy increased by 4.6% to $34.6 billion.
- The Territory state final demand (SFD) increased by 4.5% to $32.8 billion over the same period, driven by increases in both consumption and investment.
- Net exports increased by 14.1% to $13.3 billion in 2023-24.
- Over the year to September 2024, Territory SFD increased by 4.5%.
Economic growth
In 2023-24:
- the NT economy increased by 4.6% to $34.6 billion, following a decline of 5.2% in 2022-23
- the NT recorded the strongest result of the jurisdictions Chart 2)
- the increase was driven by net exports which increased by 14.1%, with a 6.8% increase in total exports and an 8.1% decline in total imports
- investment (up 8.3%) and consumption (up 3.2%) both increased (Chart 3)
- NT’s GSP per capita increased by 3.6% to $136,341.
State final demand
In 2023-24:
- the NT’s SFD increased by 4.5% to $32.8 billion, driven by increases in both consumption and investment (Chart 4). This was the second strongest year-on-year result of the jurisdictions
- national final demand increased by 2.5%
- 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 September quarter 2024, NT’s SFD:
- declined by 1.4% (seasonally adjusted terms) to $8.4 billion in the quarter, compared to nationally which increased by 0.7%
- reported the weakest result of the jurisdictions, which otherwise ranged from an increase of 0.4% in Victoria and Tasmania to an increase of 1.5% in the Australian Capital Territory
- increased by 4.5% over the year to September 2024.
- 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.
Household consumption
In 2023-24, household consumption:
- increased by 2.8% to $13.4 billion
- contributors included hotels, cafes and restaurants (adding 0.12 percentage points to GSP), food (adding 0.12 percentage points) and transport (adding 0.07 percentage points) (Chart 5)
- this was partly offset by alcoholic beverages and tobacco (subtracting 0.13 percentage points), housing, water, electricity, gas and other fuels (subtracting 0.04 percentage points), clothing and footwear (subtracting 0.02 percentage points).
In the September quarter 2024, household consumption:
- increased by 0.2% (seasonally adjusted terms) to $3.4 billion in the quarter, compared to no change nationally.
- was driven by increased expenditure on recreation and culture, hotels, cafes and restaurants, and health.
- increased by 1.9% over the year.
Public consumption
In 2023-24, public consumption:
- increased by 3.7% to $10.9 billion
- the increase was driven by both state and local consumption (up by 4.6%) and national consumption (up by 2.8%).
In the September quarter 2024, public consumption:
- was flat (seasonally adjusted terms) at $2.7 billion in the quarter, compared to an increase of 1.4% nationally.
- increased by 2% over the year.
Private investment
In 2023-24, private investment:
- increased by 6.4% to $6.1 billion, reflecting an 8.4% increase in business investment
- dwelling investments declined by 0.2% and ownership transfer costs fell by 10.8%.
In the September quarter 2024, private investment:
- declined by 7.7% (seasonally adjusted terms) to $1.6 billion in the quarter, compared to an increase of 0.1% nationally
- increased by 14.1% over the year
Business investment
In 2023-24, business investment:
- was up by 8.4% to $5.2 billion
- the main contributors were machinery and equipment (up by 25.6%) and non-dwelling construction (up by 7.1%) (Chart 6).
In the September quarter 2024, business investment:
- declined by 7.1% (seasonally adjusted terms) to $1.4 billion in the quarter. This reflects declines in non-dwelling construction (down by 6.8%), and machinery and equipment (down by 23.6%), partly offset by an increase in intellectual property products (up by 22.9%) while cultivated biological resources was flat
- increased by 17.4% over the year.
Dwelling investment
In 2023-24, dwelling investment:
- declined by 0.2% to $662 million (Chart 7).
- for more information, refer to the Housing page.
In the September quarter 2024, dwelling investment:
- declined by 18.1% to $149 million (seasonally adjusted terms) in the quarter, with a 21.6% decline in alterations and additions and 11.4% decline in new and used dwellings
- declined by 6.3% over the year.
Ownership transfer costs
In 2023-24, ownership transfer costs:
- declined by 10.8% to $273 million.
In the September quarter 2024, ownership transfer costs:
- increased by 5.6% (seasonally adjusted terms) to $76 million in the quarter
- increased by 5.6% over the year.
Public investment
In 2023-24, public investment:
- increased by 13.1% to $2.5 billion, driven by a 10.9% increase in general government investment and a 26.2% 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 September quarter 2024, public investment:
- increased by 1.9% (seasonally adjusted terms) to $655 million in the quarter
- increased by 7% over the year.
Net exports
In 2023-24, net exports:
- increased by 14.1% to $13.3 billion, reflecting a 5.1% increase in goods and a 13% decline in goods imports
- net exports of services increased by $133 million to $199 million. This reflects a 40.9% increase in services exports to $1.1 billion, partly offset by services imports increasing by 26.2% to $911 million
- the latest monthly data published by the ABS within the ‘International Trade in Goods ’ release, shows the NT’s total balance of goods traded narrowed by 49.7% to $492 million over the year to October 2024, driven by a decline in the value of exports, and an increase in the value of imports.. 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.