Budget Paper 1994-95 No.6 Northern Territory Economy
Tabled Paper 2156
Tabled Papers for 6th Assembly 1990 - 1994; Tabled Papers; ParliamentNT
Tabled by Barry Coulter
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.
Economic Growth o f prevailing econom ic conditions as well as being a m ore representative m easure o f dom estic econom ic activity in the Territory. Thus, m ovem ents in both GSP and final dem and are relevant in gaining an understanding o f what is driving econom ic activity. As shown in Figure 2.5, Territory final demand grew 2.8% in real term s during 1992/93 following a revised decline o f 1.1 % in the previous year. The household sector exhibited strong growth with private consum ption expenditure and investm ent in dwellings increasing 4.1% and 10.0%, respectively. Growth in private consumption was underpinned by relatively strong labour market conditions, modest real growth in average earnings, growth in tourist numbers and the impact o f approxim ately 440 defence force personnel and a similar num ber o f dependants relocating to the Territory in mid 1992/93. Business investment was mixed with non-dwelling investment rising 15.2% while investment in equipment declined 19.1%. The net effect o f these movements was a decline o f 3.6% in private fixed capital expenditure. Public investment increased 2.8% in 1992/ 93 reflecting, among other projects, ongoing development at Northern Territory University and additional facilities for the Australian Defence Force. For 1993/94, real grow th in consum ption expenditure is estim ated to have eased to 2.5% (dow n from 4.2% in 1992/93) w hile estim ated real capital expenditure rebounded sharply from the previous year (down 3.5% ), w ith a rise o f 15.0%. Figure 2.5 Northern Territory Real Final Demand (1989/90 dollars) $bn 5 4 3 2 1 0 86/87 87/88 88/89 89/90 90/91 91/92 92/93 93/94* 94/95# Source: ABS Cat. No. 5242.0 * NT Treasury estimate, # forecast 1 1