8 October 2013
The West Australian
A new report has found the Northern Territory economy is well placed to benefit from Australia’s emerging growth markets, including gas and agribusiness.
The report by Deloitte Access Economics says there are five growth areas that will be worth $250 billion to the Australian economy over the next 20 years.
As well as gas and farming, growth is also tipped for tourism, international education and wealth management.
The report says the Territory was slow to join the resource investment boom but it is now “the life of the party”, with gas development a focus.
It says the Territory is well positioned to continue growing its economy.
Relative to the size of its economy, the value of current engineering construction work in the Territory is larger than that of Queensland and Western Australia, the report says.
It notes that the value of the Ichthys LNG development itself is worth almost twice that of the jurisdiction’s annual economic output.
However, as currently experienced by WA and Queensland, even the biggest investment party must come to an end, the report warns.
It says that, combined with the possible commencement of a number of other resource projects, construction on the Ichthys project is expected to hold the Territory in good stead until its completion in 2016.
“This gives the Territory time to position for and catch the coming wave of super-growth sectors, as well as to help address the issues of cost competitiveness that need to change for the better in order to help the Top End remain at the forefront of global gas development,” the report said.
“In addition, there are other new opportunities opening up for the Territory.
“Asia’s emerging middle class will force a change in the way Australia’s neighbours to the north impact on our economy.
“Rather than feeding an enormous demand for industrial resources, Australia’s future opportunities will gradually shift towards satisfying the demands of the [Asian] middle class: good food, education, travel opportunities, clean energy and wealth management.”
Courtesy of the West Australian