Territory Stories

Territory economic review

Details:

Title

Territory economic review

Creator

NT Treasury, Economic and Social Analysis Unit

Collection

Territory economic review; Department of Treasury and Finance newsletters; PublicationNT; E-Journals

Date

2012-05-01

Notes

Date:2012-05; Made available via the Publications (Legal Deposit) Act 2004 (NT).; This publication contains may contain links to external sites. These external sites may no longer be active.

Language

English

Subject

Northern Territory -- Economic conditions -- Periodicals

Publisher name

Northern Territory Government

Place of publication

Darwin

File type

application/pdf

Copyright owner

Northern Territorty Government

Parent handle

https://hdl.handle.net/10070/248607

Citation address

https://hdl.handle.net/10070/570483

Page content

Territory Economic Review May 2012 Economic Group Northern Territory Treasury (08) 8999 6801 www.nt.gov.au/ntt/ economicservices.ntt@nt.gov.au - 4 - Gross State Product 20102011 In 2010-11, Territory Gross State Product (GSP) growth increased by 1.6 per cent, lower than Northern Territory Treasury Budget forecast of 2.2 per cent growth. Nationally the growth rate was 2.1 per cent. The main reasons for the modest growth in the Territory in 2010-11 was a larger than expected decline in private investment (down 20.0 per cent), mainly reflecting a 31.8 per cent fall in machinery and equipment following the completion of several major projects in the mining and energy sectors, as well as a fall in construction (down by 22.3 per cent). Economic growth in the Territory is forecast to increase by 2.3 per cent in 2011-12. This reflects increased public consumption and net exports, which are estimated to more than offset subdued private investment. Gross Domestic Product The Australian economy grew by 0.4 per cent in the December quarter 2011, compared to a revised 0.8 per cent increase in the previous quarter. The increase was primarily driven by higher household consumption and net exports, which each contributed 0.3 percentage points to growth. Increased household consumption reflects improved retail trade activity in the December quarter 2011. Government consumption contributed 0.2 percentage points to growth. Partially offsetting the increase was business investment and dwellings which each detracted 0.2 percentage points from quarterly growth. GDP growth is expected to be supported by increased exports from the mining industry, reflecting demand from China. However, uncertainty in the global economy surrounding the USs slowing recovery, the European debt crisis as well as adverse weather conditions experienced on the East coast of Australia in the first quarter of 2012 remain a risk to the performance of the Australian economy. State Final Demand In the December quarter 2011, Territory state final demand (SFD) (adjusted for seasonality and inflation) increased by 5.9 per cent compared to the previous quarter. This was mainly due to increased private sector investment and public consumption. Partly offsetting the increase was a decline in public investment. Household consumption remained flat. In the year to December 2011, Territory SFD growth increased by 1.0 per cent. This was primarily a result of rising public and private consumption, which rose by 4.0 per cent and 2.0 per cent respectively, as well as private sector investment, which rose by 1.6 per cent. This increase was partly offset by public sector investment, which decreased by 15.3 per cent in the year. Nationally, domestic final demand growth increased by 4.2 per cent in the year to December 2011, largely due to a 7.2 per cent rise in investment. Gross State Product (Latest data 2010 11) Source: ABS Cat. No. 5220.0 Gross Domestic Product (Latest data December quarter 2011) *Inflation adjusted Source: ABS Cat. No. 5206.0 State Final Demand* (Latest data December quarter 2011) * annual percentage change Source: ABS Cat. No. 5206.0, NT Treasury 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Tas ACT NT SA Qld NSW Vic WA Aust Per Cent Per Cent 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 -1 0 1 2 3 4 5 6 7 -1 0 1 2 3 4 5 6 7 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Domestic Final Demand - year on year GDP - year on year GDP - quarter on previous quarter Year ended June Per cent Per cent -10 -5 0 5 10 15 -10 -5 0 5 10 15 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Per cent Year ended June Year on Year Quarterly Per Cent