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
Retail and Wholesale Trade 79 Northern Territory Economy Retail and Wholesale Trade Retail and wholesale trade accounted for 4.8percent of NorthernTerritory gross state product (GSP) and 11.4percent of resident employment in 201112. The Territory retail sector (3.3percent of GSP) is significantly larger than the wholesale sector (1.5percent of GSP), with many Territory retailers sourcing goods from interstate wholesalers. In 201112, inflationadjusted retail turnover in the Territory increased by 3.8percent, driven by strengthening population growth, interest rate cuts and oneoff direct payments to consumers under the Commonwealths Household Assistance Package. This represents the retail sectors strongest performance in three years. However, it is lower than the average annual growth rate over the past decade. Growth in retail turnover is forecast to moderate to 3.0percent in 201213 as consumers reduce spending on retail items in response to increases in the cost of essentials such as housing and utilities, which are not part of retail trade. From 201314 to 201516, strong growth in the number of new residential dwellings and increased major project construction activity are expected to support growth in retail trade in the Territory, with turnover increasing by 5.5percent in 201314, 6.0percent in 201415 and 5.0percent in 201516. Growth is expected to then moderate to 2.5percent in 201617 following the completion of the construction of the Ichthys liquefied natural gas plant at Blaydin Point. Contributions to GSP/GDP Contributions to Employment 201112 Retail Wholesale Retail Wholesale % % % % Northern Territory 3.3 1.5 9.1 2.4 Australia 4.5 4.3 10.6 3.6 GDP: gross domestic product Source: ABS Cat. Nos 5220.0, 6291.0.55.003 Growth in Retail Turnover 201112 201213e 201314f 201415f 201516f 201617f % % % % % % Northern Territory 3.8 3.0 5.5 6.0 5.0 2.5 Australia 2.2 2.2 2.5 3.6 2.7 3.0 e: estimate; f: forecast Source: ABS Cat. No. 8501.0; Department of Treasury and Finance; Deloitte Access Economics; Retail Forecasts, February quarter 2013 Background Retail trade is the sale of goods in stores and online to households for personal consumption. The Australian Bureau of Statistics (ABS) also includes repairs to household equipment and motor vehicles in this category. ABS retail trade categories in the Territory comprise retailing in food; household goods; cafs, restaurants and takeaway food services; Chapter 7 Key points