The Northern Territory’s economy will drop by 4.1 per cent this year and will only grow by a meagre 0.3 per cent next financial year as inflation increases by 6.9 per cent, the latest data from Deloitte Access Economics reveals, casting more doubt on the Fyles Government’s $40 billion economy by the end of the decade.

Over the five years to 2027, the Territory’s annual economy is only expected to grow at an average rate of 1.1 per cent – the weakest growth of all states that range from 1.9 per cent in South Australia to 2.7 per cent in the ACT.

Deloitte forecasts the Territory’s gross state product – the market value of goods and services produced by labour and property – to shrink further as the inflation rate hikes upward.

The jurisdiction’s economy might return to the Australian Reserve Bank’s target level of 2 to 3 per cent in the fiscal year 2024-25, the latest report stated.

On the whole, the national economy is forecasted to grow at an average rate of 2.3 per cent yearly over the next five years.

“The Territory’s economic growth is subject to substantial uncertainty around international goods exports, largely related to liquefied natural gas, with international trade taking over from business investment as projects transition from construction to production,” the DAE report said.

Despite the feeble overall growth prediction, DAE forecasts robust growth for many individual sectors of the economy, with domestic demand estimates going up by 2.3 per cent, international exports increasing by 6.2 per cent, and private equipment investment expected to surge by 13.7 per cent.

Employment growth in the Territory in the next five years to 2027 is expected to average 2.5 per cent annually, with the unemployment rate seen to average 4.2 per cent—slightly below the national average of 4.3 per cent.

The Territory’s population is forecasted by DAE to grow by 1.2 per cent this year.

Five-year population forecast is pegged at an average growth of 1.5 per cent per year—above the average 1.3 per cent annual growth rate nationally.