Economic Performance

By any economic measure, the Territory economy has had a great couple of years.

The Northern Territory economy contributed an average of 1.3 per cent to Australia’s gross domestic product (GDP) in the five years to 2007-08. Minerals and energy, construction, manufacturing of alumina and liquefied natural gas (LNG) are major dirvers of an economy further supported by provision of retail, tourism and government services.

The Territory economy has grown strongly in this decade, with average annual growth in gross state product (GSP) of 3.6 per cent. This is the third highest growth rate of the jurisdictions, and the same as the average annual GDP growth for Australia.

Current activity is strong with increasing business investment, driven by major projects such as the Eni Blacktip project, the Australian Pipeline Group’s Bonaparte gas pipeline and the GEMCO manganese refinery expansion. Other planned large resource projects such as the Inpex development are boosting local business confidence and will have a significant positive effect on the Northern Territory’s future growth.

In the medium term, improved transport and port infrastructure, global demand for the Territory’s natural resources, public sector investment and a continuing record Territory Government infrastructure program will contribute to mining and economic activity that will support business investment, consumption, exports and jobs.

Government Support
The Territory Government is business friendly. It is stimulating local business by significantly cutting tax, spending record amounts on infrastructure, improving procurement processes and building a skilled workforce. The reduction in taxes will make the Territory one of the most competitive business environments in Australia.