Northern Territory economy grows 5.2 per cent in strong year for resources and defence

The Northern Territory economy grew 5.2 per cent in real terms in the last financial year, its strongest performance in a decade, driven by record LNG export values from the Darwin LNG and Ichthys facilities, the accelerating defence construction program, and a cattle industry benefiting from strong live export demand from Asian markets.

NT Treasury figures published this week show gross state product of $28.6 billion, with the resources sector accounting for 36 per cent of the total. LNG production reached its highest volume since the Ichthys facility reached full capacity, generating royalties and tax revenues that contributed to the government posting its smallest budget deficit in six years.

Chief Minister Eva Lawler said the economic performance validated the Territory's investment in the strategic industries that would define its future. She pointed to the Beetaloo Basin gas development approvals as the foundation for the next phase of growth, with commercial production from that field expected to add materially to LNG export volumes from the mid-2020s.

The construction sector grew 8.7 per cent over the year, reflecting both defence infrastructure spending and a private residential market buoyed by the Defence Housing Australia program. Employment in the sector reached record levels, with contractors reporting difficulty sourcing skilled tradespeople and using interstate labour to fill gaps.

NT Chamber of Commerce chief executive Greg Bicknell said the challenge for the Territory was converting economic growth into population retention. The NT had historically lost residents to interstate moves despite strong employment conditions, a pattern the government was attempting to address through housing supply and lifestyle infrastructure investment.

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