The Deloitte December 2021 Business Outlook, released earlier this week, estimates the Northern Territory’s economy to grow by 1.9 per cent this year and by five per cent next financial year.

“The Territory is expected to have the third weakest economic growth of the jurisdictions in 2021-22, with increases ranging from 0.9 per cent in the Australian Capital Territory to 6.9 per cent in Tasmania,” the report stated.

Nationally, the economy is estimated to grow by 2.9 per cent in 2021-22.

Deloitte Access Economics (DAE) forecasts strong growth in the Territory’s domestic economy in 2022-23, with state final demand to increase by five per cent. Decreased imports are expected to improve the Territory’s trade balance with gross state product expected to increase by five per cent.

Deloitte said growth across most jurisdictions would be “relatively narrow” over the next five years, with the NT’s economy expected to grow at an annual average of 2.8 per cent over the next five years.

Private investment will be a key driver for the NT over the next five years, the report found.

Business investment is the strongest contributor to Gross State Product (GSP) growth, forecast to grow 2.2 percentage points in the next 12 months.

The Territory’s population is expected to be flat this year, but will average 1.1 per cent annual growth over the next five years, equal to the second highest of the jurisdictions.