Budget Paper No.6 1997/98 Northern Territory Economy
Tabled Paper 3223
Tabled Papers for 7th Assembly 1994 - 1997; Tabled papers; ParliamentNT; Tabled Papers
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of consumption and capital expenditure by both the private and public sectors. Figure 2.3 shows a comparison of these components for the Territory and Australia. Reflecting the fact that the Territory economy is not yet fully developed, capital expenditure and public sector expenditure in general have a more important influence in the Territory than nationally, although the importance of the public sector has declined significantly since 1984-85. In 1995-96, State Final Demand grew by 15.0%. This was predominantly the result of an increase of 83.6% in private capital expenditure for such projects as the McArthur River Joint Venture and the Mt Todd Gold Mine. Table 2.1 shows that the next largest contributor to growth in Final Demand was private consumption expenditure. Real State Final Demand is shown in Figure 2.4. It is estimated that growth in 1996-97 was 7.6%. Whereas public expenditure has remained relatively stable, private expenditure has expanded significantly since 1990-91. This is primarily a function of the very strong population growth in the Territory (in 1996 it was 2.2%) and a healthy labour market which boosts consumption spending and drives the flourishing construction market. Exports of Territory goods are estimated to have increased for the second year in a row in 1996-97. The majority of growth will be in oil, minerals and live animals which are also the largest components of Territory exports. Higher demand for iron, steel and manufactured metals is Table 2.1 Northern Territory Gross State Product (percentage point contribution to annual change) 1994-95 1995-96 1996-97* 1997-98# Consumption Expenditure Private 4.6 4.3 5.2 4.3 Public 1.5 0.8 0.9 0.8 Capital Expenditure Private -1.1 11.4 2.2 1.8 Public 1.1 -1.5 0.2 0.2 State Final Demand 6.1 14.9 8.6 7.1 International Trade in Goods Exports -0.2 2.2 1.9 2.5 Imports -1.5 -0.6 -0.5 -0.6 Balancing Item @ 4.2 -14.7 -5.0 -3.9 Gross State Product 8.6 1.9 5.0 5.1 @ Includes international trade in services, interstate trade, changes in stocks and the statistical discrepency. Sources: ABS Cat. No. 5242.0, * NT Treasury estimates, # forecast Economic Growth 11