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 2022-23, the Territory economy decreased by 5.3% to $30.1 billion.
- The Territory state final demand (SFD) increased by 1.9% to $29.7 billion over the same period, driven by increases in both consumption and investment.
- Net exports decreased by 26.8% to $10 billion in 2022-23.
- In 2023, SFD increased by 1.3%.
Economic growth
In 2022-23:
- the NT economy decreased by 5.3% to $30.1 billion, following an increase of 5.1% in 2021-22
- the NT recorded the weakest result of the jurisdictions, with the Australian Capital Territory recording the largest increase, at 4.3% (Chart 2)
- the decrease was driven by net exports, which decreased by 26.8% with a 23.8% decrease in total exports being partly offset by 16.7% decrease in total imports
- investment (up 5.1%) and consumption (up 0.9%) both increased (Chart 3)
- NT’s GSP per capita decreased by 6.2% to $120,231
State final demand
In 2022-23:
- the NT’s SFD increased by 1.9% to $29.7 billion, driven by increases in both consumption and investment (Chart 4). This was the second weakest year-on-year result of the jurisdictions
- national final demand increased by 3.5%
- 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 December quarter 2023, NT’s SFD:
- increased by 3.0% (seasonally adjusted terms) to $7.7 billion in the quarter, compared to nationally which increased by 0.1%
- reported the strongest result of the jurisdictions, which otherwise ranged from a decrease of 0.4% in New South Wales and South Australia to an increase of 1.1% in the Australian Capital Territory.
- increased by 1.3% in year-on-year terms (original terms) driven by increases in both consumption and investment (Chart 4)
- recorded the weakest year-on-year result of the jurisdictions
- 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 2022-23, household consumption:
- increased by 0.4% to $12.0 billion
- contributors included hotels, cafes and restaurants (adding 0.41 percentage points to SFD), transport (adding 0.40 percentage points) and health (adding 0.14 percentage points) (Chart 5)
- this was partly offset by recreation and culture (subtracting 0.06 percentage points), food (subtracting 0.05 percentage points) and alcoholic beverages and tobacco (subtracting 0.04 percentage points to SFD).
In the December quarter 2023, household consumption:
- decreased by 0.7% (seasonally adjusted terms) to $3.0 billion in the quarter, compared to a 0.1% increase nationally.
- was driven by decreased expenditure on hotels, cafes and restaurants and recreation and culture.
- increased by 0.1% (original terms) in year-on-year terms.
Public consumption
In 2022-23, public consumption:
- increased by 1.4% to $10.4 billion
- the increase was driven by both state and local consumption (up by 1.1%) and national consumption (up by 1.8%).
In the December quarter 2023, public consumption:
- increased by 1.0% (seasonally adjusted terms) to $2.6 billion in the quarter, compared to an increase of 0.6% nationally.
- increased by 1.1% (original terms) in year-on-year terms.
Private investment
In 2022-23, private investment:
- increased by 2.8% to $5.3 billion, reflecting a 4.7% increase in business investment
- dwelling investments was flat and ownership transfer costs fell by 14%.
In the December quarter 2023, private investment:
- increased by 15.0% (seasonally adjusted terms) to $1.5 billion in the quarter, compared to an decrease of 0.2% nationally
- decreased by 0.6% (original terms) in year-on-year terms.
Business investment
In 2022-23, business investment:
- was up by 4.7% to $4.3 billion
- the main contributors were non-dwelling construction (up by 12.1%) and cultivated biological resources (up by 34.4%) (Chart 6).
In the December quarter 2023, business investment:
- increased by 18.7% (seasonally adjusted terms) to $1.3 billion in the quarter. This reflects increases in non-dwelling construction (up by 29.7%) and machinery and equipment (up by 14.3%) partly offset by decreases in intellectual property products (down by 9.0%) and cultivated biological resources (down by 4.3%).
- increased by 1.1% (original terms) in year-on-year terms.
Dwelling investment
In 2022-23, dwelling investment:
- was flat at $661 million (Chart 7)
- for more information, refer to the Housing page.
In the December quarter 2023, dwelling investment:
- decreased by 1.9% to $157 million (seasonally adjusted terms) in the quarter, with a 16.4% decrease in new and used dwellings, whilst alterations and additions increased by 10.3%.
- decreased by 1.7% (original terms) in year on year terms (Chart 7).
Ownership transfer costs
In 2022-23, ownership transfer costs:
- decreased by 14% to $332 million.
In the December quarter 2023, ownership transfer costs:
- decreased by 2.7% (seasonally adjusted terms) at $73 million in the quarter.
- decreased by 18.5% (original terms) in year-on-year terms.
Public investment
In 2022-23, public investment:
- increased by 12.3% to $2.0 billion, driven by a 9.1% increase in general government investment (driven by state and local governments), and a 29.5% increase in public corporations investment, driven by both Commonwealth and state and local governments.
- 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 December quarter 2023, public investment:
- increased by 3.4% (seasonally adjusted terms) to $577 million in the quarter.
- increased by 15.2% (original terms) in year-on-year terms.
Net exports
In 2022-23, net exports:
- decreased by 26.8% to $10 billion, reflecting a 25.1% decrease in goods exports partly offset by a 22% decrease in goods imports
- net exports of services decreased by $108 million to $42 million. This reflects a 112.3% increase in services imports to $484 million partly offset by services exports increasing by 39.2% to $526 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 decreased by 9.0% to $12.8 billion in the year to January 2024, driven by a decrease in the value of exports, partly offset by a decrease in 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.