NT economy was shrinking before COVID-19, new ABS data shows

by | Jun 4, 2020 | Business | 1 comment

Economic indicators continue to paint a bleak picture of the Territory’s economy, with the latest Australia Bureau of Statistics figures showing the economy shrunk by 1.2 per cent in the March quarter and by seven per cent year on year.

That was led by weaker household consumption and public investment, and a deep dive in private investment in the NT that plunged 7.9 per cent to $754 million.

Those alarming figures were recorded before the coronavirus pandemic took hold. Things are expected to get worse by the end of June.

Other key indicators showed a 20 per cent decrease in petroleum exploration in the Territory and a nine per cent drop in non-dwelling construction.

CLP Treasury spokeswoman Tracey Hayes said the forecasts were “dire”.

“We know the next quarter results will be like the Territory economy falling off a cliff with the full impact of COVID-19,” she said. “These figures for March show just how badly the economy was going, even before COVID-19.

“The Northern Territory badly needs an economic turnaround soon. We need a government that will encourage investment to create jobs and get the private (sector) going again.”

The Territory also reported the second largest decline in State Final Demand in the county, next to NSW.

On the federal level, the national GDP shrunk by 0.3 per cent in the March quarter, prompting confirmation from Treasurer Josh Frydenberg that the Australian economy is in recession.

Chief Minister Michael Gunner was contacted for comment but did not respond.

(Visited 117 times, 1 visits today)

Ads by Google

Ads by Google

Adsense

Adsense

Adsense

Adsense

Adsense

Adsense

Adsense

Adsense

Adsense

Adsense

Adsense

Adsense