Territory economic review
NT Treasury, Economic Analysis Division
Territory economic review; Department of Treasury and Finance newsletters; PublicationNT; E-Journals
Date:2003-03; 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.
Northern Territory -- Economic conditions -- Periodicals
Northern Territory Government
Northern Territorty Government
MARCH 2003 11 TERRITORY ECONOMIC REVIEW www.nt.gov.au/ntt/economic Territory Dwelling Commencements 0 500 1000 1500 2000 2500 90 91 92 93 94 95 96 97 98 99 00 01 02 03 0 500 1000 1500 2000 2500 number number Year ended June P rivate* Total* Total (quarterly) * moving annual total Source: NT Treasury, ABS data fundamentals to drive the upswing Should the recent oversupply of dwellings turn to a deficiency, residential construction activity will be primed for a sustainable recovery, with interest rates still low and the Territory economy beginning to pick up. Nonetheless, it may take some time before sufficient momentum gathers, as confidence improves and population and employment growth lead to an increase in the rate of household formation. BUSINESS INVESTMENT High investment levels Territory business investment continues to be heavily influenced by major infrastructure works. Due to the small size of the Territory economy, these large projects have a significant impact on measured investment. Major projects currently in the construction phase include the Alice Springs to Darwin railway, Bayu-Undan Stage One (liquids extraction) and Stage Two of the East Arm Port. continue Territory business investment growth was flat in the December quarter 2002, but in absolute terms, remains at a very high level as work in the Other Buildings and Structures category, for the railway and Bayu-Undan continues. The strength of the pick up in the past year is evident in business investment growth of 53 per cent, to $2.3 billion, in calendar year 2002. due to major projects In the December quarter 2002, Other Buildings and Structures investment fell by 5.4 per cent to $390 million. This was after a 34 per cent jump in activity (from already high levels) in the September quarter. In year on year terms, activity more than doubled to $1.4 billion in 2002, boosted by the railway and the attribution to the Territory of investment offshore for Bayu-Undan Stage One. supported by purchase of aircraft Growth in Machinery and Equipment investment has picked up in the past year and increased by 35 per cent, to $160 million, in the December quarter. This follows a relatively weak September quarter. This category includes business vehicles, aircraft, ships, and office equipment and furniture. The purchase of new aircraft by Qantas in the quarter acted to boost this category, with investment of around $1.3 billion apportioned to jurisdictions on a per capita basis. drop in exploration activity At the national level, Intangible Fixed Assets investment is primarily in computer software, artistic and other copyright and mineral exploration. In the Territory, Intangible Fixed Assets is dominated by the volatile mineral exploration component. Investment in this category fell by 40 per cent, to $30 million, in the December quarter 2002 in line with the recent fall back in exploration activity in the Timor Sea. local value adding Business investment for the construction of the railway continues to have a significant impact on the onshore economy, through local contracts and employment. This is in contrast to work done for the Bayu-Undan Stage One project. Nonetheless, although most of the $1.8 billion investment for the project will leak out of the Territory economy, it is still likely to create some opportunities for local value adding.
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