Territory Stories

Territory economic review

Details:

Title

Territory economic review

Creator

NT Treasury, Economic Analysis Division

Collection

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

Date

2003-03-01

Notes

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.

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/10070/212458

Citation address

https://hdl.handle.net/10070/716367

Page content

MARCH 2003 8 TERRITORY ECONOMIC REVIEW www.nt.gov.au/ntt/economic CONSUMPTION Northern Territory Consumption# Year on Year Ended June (per cent change) 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Latest Annual % change* Total Consumption Expdenditure 8.9 -1.6 8.5 5.5 7.0 2.6 4.9 Dec Q 02 5.3 Private Consumption 7.8 -2.4 7.2 5.2 7.1 1.9 4.3 Dec Q 02 4.5 Public Consumption 10.2 -0.6 9.9 5.8 6.9 3.4 5.6 Dec Q 02 6.3 Commonwealth - Defence 31.9 -20.8 44.6 15.8 13.9 3.6 19.5 Dec Q 02 10.9 Commonwealth - Non-defence 9.1 6.2 0.3 9.4 6.3 -0.4 2.0 Dec Q 02 -0.9 Commonwealth - Total 20.6 -8.5 20.7 12.8 10.8 2.1 12.8 Dec Q 02 6.8 State and Local - Total 5.3 3.7 5.1 1.9 4.5 4.3 0.8 Dec Q 02 5.8 Real Retail Turnover 8.0 -6.2 1.9 5.8 6.0 -1.2 3.9 Dec Q 02 2.9 New Motor Vehicle Sales (number) 2.4 2.1 17.0 -3.4 -8.8 -4.2 -0.3 Jan Q 03 -1.1 # Based on original, chain volume measure, except for new motor vehicle sales which is based on numbers Source: NT Treasury, ABS data * Quarter on corresponding quarter the previous year, or through the year annual per cent change Large component of economic activity Consumption is typically around three-quarters of final expenditure in the Territory, with household consumption about 55 per cent of total consumption, compared to about 75 per cent nationally. The higher proportion of government consumption reflects the significance of public administration to the developing Territory economy (and often greater costs in the provision of services), and the large defence presence. weakened in 2000-01 Following very strong growth in the preceding three years, private consumption expenditure increased by only 1.9 per cent in 2000-01 (see table). Weak employment, population and wages growth, the construction industry downturn, higher petrol prices and the lagged effect of interest rate rises acted to slow growth in incomes and consumption expenditure. In addition, the stimulus from the defence force expansion slowed and East Timor-related consumption weakened. strong recovery in 2001-02 Territory consumption expenditure recovered strongly in 2001-02, with growth of 4.9 per cent. Growth was across the private and the public sectors. households The strong recovery in private consumption was driven by stronger employment growth, low interest rates, lower petrol prices and additional spending associated with the railway. Nonetheless, following five quarters of consecutive growth, seasonally adjusted private consumption fell by 1 per cent in the December quarter 2002. After such a strong pick up, some further easing back in private consumption growth is likely this year. defence Public consumption expenditure in the Territory has been boosted in the past year or so, and is largely associated with the increased defence focus since the September 11 terrorist attacks. The Australian Bureau of Statistics allocation of Commonwealth defence consumption expenditure is based, to a large extent, on the number of defence personnel stationed in each jurisdiction. Given that around 10 per cent of Australias permanent defence personnel are stationed in the Territory, and given the Territorys relatively small economy, changes in the volatile defence consumption category (see table) can have a marked impact on consumption growth rates. Defence consumption allocated to the Territory was almost $1 billion in 2002. general government Non-defence government expenditure was around $2.4 billion in 2002. State and local government dominate non-defence government consumption, typically accounting for around 80 per cent of these expenditures. Following almost of decade of sustained growth in state and local government consumption, there was an easing in growth in 2001-02. Growth has since strengthened a little, though is expected to remain moderate in the short term. Consumption Growth* -2 0 2 4 6 8 10 91 92 93 94 95 96 97 98 99 00 01 02 03 -2 0 2 4 6 8 10 per cent Year ended June Northern Territory Australia per cent * moving annual total annual per cent change, chain volume measure Source: NT Treasury, ABS data


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