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). The NT Government’s Economic Development Framework leverages existing strengths of the NT economy, unique culture and resources and our location as the gateway between Asia and Australia to continue the development and diversification of the NT economy, and encourage new investment and growth opportunities in the future.
Key facts
- In 2020-21, the Territory economy decreased by 0.6% to $26.2 billion.
- The Territory state final demand (SFD) increased by 6.1% to $25.0 billion, driven by increases in both consumption and investment.
- Net exports decreased by 7.2% to $9.9 billion in 2020-21.
- In the year to September 2021, SFD increased by 8.6%
Economic growth
In 2020-21:
- the NT economy decreased by 0.6% to $26.2 billion, down from an increase of 6.0% in 2019-20
- the NT recorded the largest decrease of the jurisdictions, while South Australia recorded the largest increase, at 3.9% (Chart 2)
- the decrease was driven by net exports (down 7.2%), with a 7.4% decrease in net goods and a 1.9% increase in net services (Chart 3)
- consumption increased by 5.3% and investment increased by 9.6%
- NT’s GSP per capita decreased by 1.1% to $106,183
State final demand
In 2020-21:
- the NT’s SFD increased by 6.1% to $25.0 billion, driven by increases in both consumption and investment (Chart 4)
- national final demand increased by 2.4%
- 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 2021, NT’s SFD:
- increased by 4.0% (seasonally adjusted terms) to $6.7 billion in the quarter, compared to a decrease of 1.8% nationally
- was the second largest increase of the jurisdictions, which ranged from a decrease of 6.5% in New South Wales to a 4.2% increase in Tasmania
- the NT’s SFD increased by 8.6% in year-on-year terms (original terms) driven by increases in consumption (both public and private) and private investment (Chart 4)
- recorded the best 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 2020-21, household consumption:
- increased by 6.6%, to $11 billion
- contributors included miscellaneous goods and services (adding 0.26 percentage points to SFD), health (adding 0.25 percentage points) and recreation and culture (adding 0.23 percentage points) (Chart 5)
- this was partly offset by transport (subtracting 0.25 percentage points) and alcoholic beverages and tobacco (subtracting 0.08 percentage points to SFD).
In the September quarter 2021, household consumption:
- increased by 0.5% (seasonally adjusted terms) to $2.8 billion in the quarter, compared to a decrease of 4.8% nationally
- increase in the quarter was driven by increased expenditure on alcohol and tobacco and housing, water, electricity, gas and other fuels
- increased by 8.6% (original terms) in year-on-year terms.
Public consumption
In 2020-21, public consumption:
- increased by 3.6% to $8.9 billion
- the increase was driven by state and local consumption up by 3.7% and a 3.6% increase in national consumption.
In the September quarter 2021, public consumption:
- increased by 9.1% (seasonally adjusted terms) to $2.4 billion in the quarter, compared to an increase of 3.6% nationally
- increased by 4.0% (original terms) in year-on-year terms.
Private investment
In 2020-21, private investment:
- increased by 16.7% to $3.9 billion, largely due to a 12.9% increase in business investment, and a 25.0% increase in dwelling investment
- ownership transfer costs increased by 51.7%
In the September quarter 2021, private investment:
- increased by 2.5% (seasonally adjusted terms) to $1.2 billion in the quarter, compared to an increase of 0.8% nationally
- increase in the quarter was driven by business investment (up by 3.9%)
- increased by 16.5% (original terms) in year-on-year terms.
Business investment
In 2020-21, business investment:
- was the main contributor to the increase for total investment, up by 12.9% to $2.9 billion
- the main contributors were non-dwelling construction (up 25.9%), machinery and equipment (up 10.1%) and cultivated biological resources (up 37.0%) (Chart 6).
In the September quarter 2021, business investment:
- increased by 3.9% (seasonally adjusted terms) to $937 million in the quarter
- increase in the quarter reflects increases in machinery and equipment (up by 11.3%) and intellectual property products (up by 11.9%)
- increased by 26.5% (original terms) in year-on-year terms.
Dwelling investment
In 2020-21, dwelling investment:
- increased by 25.0% to $716 million
- the increased dwelling supply over recent years and moderating population growth has also placed downward pressure on property prices and rents. For more information, refer to the Housing page.
In the September quarter 2021, dwelling investment:
- decreased by 12.4% to $155 million (seasonally adjusted terms) in the quarter, with a 26.3% decrease in alterations and additions, partly offset by a 3.7% increase in new and used dwellings
- increased by 7.1% (original terms) in year-on-year terms (Chart 7)
Ownership transfer costs
In 2020-21, ownership transfer costs:
- increased by 51.7% to $217 million.
In the September quarter 2021, ownership transfer costs:
- increased by 26.7% (seasonally adjusted terms) to $76 million in the quarter
- increased by 65.6% (original terms) in year-on-year terms.
Public investment
In 2020-21, public investment:
- fell by 7.8% to $1.2 billion, driven by a 17.6% decrease in public corporations investment both Commonwealth and state and local related, and a 6.0% decrease across general government investment, driven by the national 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 September quarter 2021, public investment:
- increased by 6.6% (seasonally adjusted terms) to $353 million in the quarter
- decreased by 3.5% (original terms) in year-on-year terms.
Net exports
In 2020-21, net exports:
- decreased by 7.2% to $9.9 billion, reflecting a 5.5% decrease in goods exports and a 2.2% increase in goods imports
- net exports of services increased by $4 million to $215 million. This reflects a 56.5% decrease in services exports to $300 million and an 82.3% decrease in services imports to $85 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 decreased by 4.8% to $10.1 billion in the year to October 2021, driven by a decrease 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.