Despite the NT Government’s denial that the economy is in a recession, the Territory’s economy has shrunk by another one per cent for the third consecutive quarter, alongside Tasmania—the only two jurisdictions recording a steady decline in growth, according to CommSec’s latest state-of-the-states report.

The national economy grew by 0.4 per cent over the same period in review.

Year-on-year, CommSec’s quarterly state-of-the-states report saw the NT’s economy moving backward with a 2.4 per cent decline in growth.

CommSec’s report has painted a grim outlook for the NT economy compared to all other jurisdictions, as it continues to struggle to compete for crucial projects and workers.

The NT’s economy continues to be saddled with falling home prices and plunging dwelling figures. Collapsing housing and dwindling vehicle registrations also continue to burden the local economy.

The Territory’s construction work recorded a 48.3 per cent decline on the 10-year Territory average; housing finance was down 10.4 per cent, dwelling starts declined by 51.4 per cent; and home prices fell 1.7 per cent for the September quarter.

The latest figures from the Australian Bureau of Statistics (ABS) also showed that the NT has posted its second quarter of negative state final demand.

The negative outcome was driven by a 1.5 per cent decline in government consumption but was offset by a 0.4 per cent increase in household spending brought about by transportation costs such as fuel and a slight increase in new vehicle consumption after the delivery backlog lessened.

The NT’s grave inability to get big resource projects off the ground also reflected a 12.4 per cent decrease in non-dwelling construction brought about by reduced mining infrastructure investments.

The billions of dollars being put into the jurisdiction by Defense, however, benefited the declining NT economy, enabling the jurisdiction’s equipment investment to be the country’s highest with a 26 per cent annual increase.

A positive from the latest CommSec report was the growth in population from 0.34 per cent last year to 0.85, as well as a 3.9 per cent unemployment figure that is in line with that of other jurisdictions.

“Population growth improved in recent quarters right across the nation including the Northern Territory. What every economy needs is a driver of economic growth whether it’s a new project, more tourists coming through or more migrants settling,” CommSec chief economist Craig James said.

CLP Treasury spokesman Bill Yan said the NT is going backward under Labor, who continue to “put their heads in the sand”.

“After seven years of this Labor government, the Territory has more debt and the worst performing economy in Australia. The Treasurer’s only plan is to tell Territorians they’re better off when quite clearly they’re not,” Mr Yan said.

“Territorians have had a gutful of Labor’s spin and excuses, crime is out of control, the Territory’s reputation is in tatters and our economy continues to go backwards.”

Two successive declines in economic growth (measured by Gross Domestic Product) is considered as a technical recession.

The NT Government, again, dismissed the independent economic report, claiming that CommSec’s assessment uses the 10-year-measure figures that include the Inpex boom that was a unique economic event.

“This has always been a deeply flawed report that does not accurately show how the Territory is performing compared to the rest of the nation – with comparing the Territory to the peak of the Inpex construction boom,” an unnamed spokesperson told state media outlet NT News.