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Economics forecasts a strong NT economy

Access Economics forecasts a strong Territory Economy

Treasurer Delia Lawrie welcomed the release of Access Economics’ June Quarter 2010 Business Outlook that predicts strong job and economic growth for the Territory.

“The Access Economics analysis is positive for local business with the Territory forecast to have the third highest economic growth behind the resource rich states of Western Australia and Queensland,” Ms Lawrie said.

“Jobs growth in the Territory is predicted to continue to lead the nation which is good news for Territory families,” Ms Lawrie said.

The Territory’s economy is set to grow by an average annual rate of 3.7%, compared to 3.2% across Australia, over the five years to 2013-14.

The Territory’s economic growth is expected to be driven by a strong growth in exports and private construction investment, particularly major projects.

The Access report highlights “the Territory has some glittering project possibilities ahead that could turbo-charge its growth”, reflecting the impact major projects such as the Inpex Ichthys development will have on the Territory economy.

“Major projects have always been important to our relatively small economy, which is why the Territory Government worked hard to attract the Inpex project away from Western Australia”, Ms Lawrie said.

The report also notes that if either the Inpex project or the tripling of production at the Wickham Point LNG plant goes ahead, then “the next phase of Territory growth will be well and truly in the bag”.

The report also forecasts economic growth to strengthen to 4 per cent in 2010-11 and revised upwards the Territory’s economic growth in 2009-10 to 1 per cent.

“The Territory’s economy was in-between major projects in 2009-10 with slowing private investment, which is why the Territory Government boosted public infrastructure spending to a record $1.3 billion that year to protect jobs across the construction sector.

“The highest jobs growth in the nation and lowest unemployment highlights the Territory Government’s investment has paid off, keeping our economy growing and protecting jobs.”

“The Territory Government has continued this strategy with a record $1.8 billion infrastructure spend to be rolled out across schools, roads and housing this financial year,” Ms Lawrie said