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.
on of benefits to those sectors of the economy which support the offshore oil industry and provide goods and services to workers in the industry. The Territory lacks the secondary processing capacity of other states with the manufacturing industry accounting for only 5% of GSP. This proportion has changed little in recent years, and can be compared to 14.5% nationally. Other notable differences between the Territory and national economies include: a higher proportion of government administration and defence. This reflects the high cost of providing public services to a small and dispersed population and the build-up of defence forces in the Top End in recent years; a higher proportion of construction reflecting the high rate of development of the Territory and the consequent need for construction services; a lower proportion of property and business services reflecting the provision of some of these services from outside the Territory; and a lower proportion of the ownership of dwellings industry which comprises the notional rent paid by home owners to themselves. This reflects the relatively low rate of home ownership in the Territory, although this has grown in recent years. ECONOMIC OUTLOOK Table 2.1 shows the components of growth for the past three years and a forecast for 1998-99. In 1998-99 overall economic growth in the Territory is expected to accelerate to 6.5%, up 1.8 percentage points on the estimated growth of 4.7% in 1997-98. This rate of growth is comparable with that in 1996-97. This is slightly higher than the 5.1% average experienced over the past ten years. Factors contributing to higher growth in 1998-99 include: 10 Northern Territory Economy 0 3 6 9 12 15 Agriculture, forestry and fishing Mining Manufacturing Electricity, gas and water Construction Wholesale trade Retail trade Accommodation, cafes and restaurants Transport and storage Communication Finance and insurance Property and business services Government administration and defence Education Health and communtiy services Culture and recreational services Personal and other services Ownership of dwellings General government Northern Territory Australia Per cent of GSP/GDP Figure 2.4 GROSS STATE PRODUCT BY INDUSTRY Source: ABS Cat. No. 5220.0, 1995-96