Service industries
Outlook
The outlook for the Territory’s service industries is positive, with growth in output driven by stronger real income growth for households, improving tourism and a strong pipeline of construction projects that will also support future growth.
The service sector covers a broad range of industries (Chart 2), which accounted for 19.9% of the Territory’s GSP and 31.9% of the Territory’s employment in 2023-24.
Chart 2: Territory sub-industries of the service sector, gross value added
Source: ABS, Australian National Accounts: State Accounts; Department of Treasury and Finance
Growth in the service sector slowed to 1.4% in 2023-24, driven by transport, and postal and warehousing services, contributing 1.2 percentage points. This reflected strong demand related to large projects in the Territory, such as the $6 billion Barossa project. Administrative and support services also performed well in the year, contributing 0.6 percentage points to growth (Chart 3).
Chart 3: Territory service sector gross value added
Source: ABS, Australian National Accounts: State Accounts
Professional, scientific and technical services will be supported over the year ahead by the completion of the Barossa project, and large scale projects such as the Darwin ship lift facility and Territory and Commonwealth joint investment in remote housing. The service sector is also expected to benefit from defence infrastructure projects and increased expenditure on electricity and water infrastructure.
The service sector will also be supported by a number of large proposed construction projects that, if final investment decisions are achieved, will boost and sustain service industries in the Territory in the future. For further information on these projects see Northern Territory Economy PDF (1.9 MB) chapter 2 economic growth.
Large construction projects are expected to contribute to population growth with significant workforce demand. Population growth will support greater demand for a wide range of services across the Territory such as electricity, gas, water and waste services, and rental, hiring and real estate services.
The tourism industry is also expected to support accommodation, food, arts and recreation services. The outlook for tourism remains positive over the long term with the industry continuing to recover from covid.
For the latest data on service industries, refer to the Territory Economy website.