Budget Paper No5 Northern Territory Economy 1998/99
Tabled Paper 382
Tabled papers for 8th Assembly 1997 - 2001; Tabled papers; ParliamentNT
Tabled by Michael Reed
Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.
Ameasure of diversity is the extent to which the four largest industries dominate output. In 1995-96 the Territorys four largest industries (in terms of value added to total output) accounted for 37% of Territory GSP at factor cost. This ratio was lower than in any other State or Territory, except Queensland (35%) and lower than the national average of 38%. This suggests that the Territory economy is more diversified than the national economy and hence less reliant on its largest industries. The ACT (52%) and Western Australia (43%) were the least diversified economies, being heavily reliant on the public sector and mining industry respectively. A measure of the exposure of an economy to outside influences is the ratio of exports to GSP. A higher ratio indicates that the economy is more integrated with the world economy and is potentially more vulnerable to adverse conditions in world markets. In 1996-97, exports accounted for 26.1% of Territory GSP. This was considerably higher than the national average of 15.2%, indicating that in general terms the Territory economy is relatively more exposed to adverse conditions in world markets. The only jurisdiction with a higher ratio than the Territory was the resource rich Western Australia at 37.6%. Queensland had the next highest ratio of exports to GSP at 17%. Figure 2.4 shows a breakdown of Territory and national GSP, at factor cost, by industry. The most notable differences between the Territory and national economies on an industry basis are the relative importance of mining in the Territory and the relative importance of manufacturing in the national economy. In 1995-96 mining accounted for 11.7% of Territory GSP, more than double the national proportion of 4.6%. While mining is extremely important to the Territory economy, in the most recent three years for which data is available, this dominance has diminished considerably. In the early 1990s the mining industry accounted for over 20% of Territory GSP, peaking at 24.9% in 1990-91. This peak was the direct result of high oil prices inflated by the Gulf War, coupled with high levels of production of oil from the Timor Sea. As the price of oil fell and more importantly production quantities reduced as reserves in the three oil fields diminished, minings share of Territory GSP fell by half. The flow on effects of this fall in production were not particularly significant on the rest of the Territory economy due to the relatively weak linkages at that time between the Timor Sea oil fields and the onshore Territory economy. Development of new oil fields in the Timor Sea over the next few years will see an increase in the importance of the mining industry. Improved linkages to the rest of the Territory economy will result in a flow 9 Economic Growth 0 10 20 30 40 50 60 Private Consumption Public Consumption Private Investment Public Investment Northern Territory Australia Per cent of Final Demand Figure 2.3 FINAL DEMAND - 1996-97 Source: ABS Cat. No. 5242.0 and 5206.0
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