What is happening in the Territory economy

Economic outlook

The Territory is greatly influenced by external economic conditions such as exchange rates, commodity prices, interstate and international migration flows, and investment in major projects. The unique structure of the economy is also affected by the small population, spread over a large and mostly remote area.

The Northern Territory Economy book provides key economic forecasts and a detailed discussion of the outlook for the Territory economy, including growth, employment, population, trade, and national and international economic conditions.

The effects of the economy are discussed in many sections of the budget papers. To find out about the different economic factors, start with the Overview of the Northern Territory Economy, in particular, Table 1.2.

NT Economy, Table i: Key economic indicator forecasts (%)

2020-21e2021-22f2022-23f2023-24f2024-25f
Gross state product1 4.7 2.3 3.1 - 0.3 2.3
State final demand2 4.2 4.3 3.9 2.7 - 3.1
Population3 0.3 0.5 0.8 0.9 1
Employment4 - 0.6 1.8 1.7 1.1 0.7
Unemployment rate5 5.6 5.4 5.1 4.9 4.8
Consumer price index6 0.7 1.8 1.4 1.8 2.2
Wage price index7 1.7 1.7 1.4 1.3 1.4
  1. Gross state product – the change in the value adding that occurs in an economy such as wages, profits and superannuation.
  2. State final demand – the change in the total value of goods and services sold in a state/territory to buyers to consume or retain in the form of capital assets.
  3. Population – the net population growth, that is, the sum of births, deaths and net migration (interstate and international).
  4. Employment – the change in the number of employed persons in the labour force. Unemployment rate – the change in the number of unemployed persons in the labour force.
  5. Unemployment rate – the change in the number of unemployed persons in the labour force.
  6. Consumer price index – measures changes in the price of a predetermined basket of consumer goods and services purchased by households, compared to a base year.
  7. Wage price index – measures changes over time in wages and salaries of employees, unaffected by changes in the quality or quantity of work performed, compared to a base year.