Budget 2013/14 Northern Territory Economy
Tabled paper 295
Tabled Papers for 12th Assembly 2012 - 2016; Tabled Papers; ParliamentNT
Tabled by David Tollner
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.
Department of the Treasury and Finance
14 Structure of the Economy 2013-14 Budget Although contributing a modest 3.5per cent to Territory GSP in 2011-12, education and training accounted for 9.3percent of employment, compared with 7.6percent of employment nationally. Despite its large contribution to Territory GSP, the ABS reports that the mining industrys share of resident employment was relatively small (3.4percent) in 2011-12 (Chart 1.3). This primarily reflects the capital-intensive nature of the mining industry due to high utilisation rates of machinery and equipment. However, the number excludes FIFOs. Trade Territory exports mainly comprise mineral, energy and agricultural commodities as well as tourism, all of which are prone to significant price fluctuations. As such, global supply and demand conditions and exchange rate movements can have a significant impact on the Territory economy. In 2011-12, international trade exports of goods and services accounted for 33.6 percent of Territory GSP, compared with 21.4 per cent nationally. The relatively large contribution of exports means the Territory is more exposed to global economic conditions than most other jurisdictions. This can lead to substantial volatility in economic activity from year to year. In 2011-12, international trade imports of goods and services accounted for 25.3 per cent of Territory GSP, compared with 20.1 per cent nationally. The top three Territory imports in 2011-12 were feedstock gas for the Darwin LNG plant, petroleum products (unleaded petrol, diesel and aviation fuel), and machinery and equipment. In contrast, the top three imports nationally were petroleum products, motor vehicles and telecommunications equipment. A substantial amount of internationally imported goods consumed in the Territory arrive from other states and territories within Australia. This reflects major distribution centres for national and international companies being based in major population centres such as Melbourne and Sydney. International goods originally arrive in these cities and then are distributed nationally, being recorded by the ABS as interstate trade. Expenditure Patterns: Components of Domestic Demand Expenditure is commonly divided into consumption expenditure (spending on goods and services such as food, clothing and footwear, and rents) and investment expenditure (spending on the acquisition of assets such as dwellings and other buildings and structures, machinery and equipment). A greater proportion of the Territorys expenditure is accounted for by consumption rather than investment, with consumption expenditure accounting for about 80 per cent of the Territorys state final demand (SFD). General government consumption expenditure in the Territory accounts for a significantly higher share of total consumption expenditure compared with that nationally, while household consumption is lower (Chart 1.4). The relatively large share of general government consumption in the Territory reflects the size of the public administration and defence sector compared with other jurisdictions. Export Propensity Imports Consumption