Northern Territory Surges Up Economic Momentum Rankings as Western Australia Maintains Lead
Latest data places the Northern Territory third nationally for annual growth ahead of 2026, while Western Australia continues to dominate.
The Northern Territory has made a significant leap in its economic rankings, vaulting into third place for annual momentum among Australia’s states and territories, according to the latest report by CommSec. The earlier image of the region lagging is now contrasted with strong growth rates and rising investor confidence.
While Western Australia remains the overall leader, capturing first place with the strongest combination of growth, population gains and investment, the Northern Territory’s marked rise reflects notable gains.
The report shows the Territory recorded year-on-year growth of 10.2 per cent — faster than any other jurisdiction — with major gains in home lending (up 30.1 per cent), dwelling starts (up 42.4 per cent) and construction activity (up 5.5 per cent).
Population growth also contributed to the uplift.
While the Territory had been projected to grow by around one per cent, data from the Australian Bureau of Statistics shows an actual increase of about 1.3 per cent by March 31 2025, adding roughly 3,500 people to the region.
That migration gain helps underpin retail, housing and labour markets.
Despite these strong results, the Territory still faces headwinds.
New equipment investment fell by 26.4 per cent — the largest decline among jurisdictions — and certain construction sectors remain constrained by skilled-labour shortages.
The annual data places the Territory third in momentum, behind Western Australia and South Australia and ahead of larger economies such as Queensland, New South Wales and Victoria.
The findings spotlight a turning point for the Northern Territory, shifting the narrative from “economy in waiting” to “economy gaining traction.” As public investment begins to taper, the challenge will be whether private-sector activity can sustain the momentum.
The data thus sets the stage for the Territory’s 2026 outlook, with strategic infrastructure, population growth and housing investment emerging as key levers.
With Western Australia holding firm at the top, the Northern Territory’s rise nonetheless signals that smaller jurisdictions can climb fast when structural and policy conditions align.
While Western Australia remains the overall leader, capturing first place with the strongest combination of growth, population gains and investment, the Northern Territory’s marked rise reflects notable gains.
The report shows the Territory recorded year-on-year growth of 10.2 per cent — faster than any other jurisdiction — with major gains in home lending (up 30.1 per cent), dwelling starts (up 42.4 per cent) and construction activity (up 5.5 per cent).
Population growth also contributed to the uplift.
While the Territory had been projected to grow by around one per cent, data from the Australian Bureau of Statistics shows an actual increase of about 1.3 per cent by March 31 2025, adding roughly 3,500 people to the region.
That migration gain helps underpin retail, housing and labour markets.
Despite these strong results, the Territory still faces headwinds.
New equipment investment fell by 26.4 per cent — the largest decline among jurisdictions — and certain construction sectors remain constrained by skilled-labour shortages.
The annual data places the Territory third in momentum, behind Western Australia and South Australia and ahead of larger economies such as Queensland, New South Wales and Victoria.
The findings spotlight a turning point for the Northern Territory, shifting the narrative from “economy in waiting” to “economy gaining traction.” As public investment begins to taper, the challenge will be whether private-sector activity can sustain the momentum.
The data thus sets the stage for the Territory’s 2026 outlook, with strategic infrastructure, population growth and housing investment emerging as key levers.
With Western Australia holding firm at the top, the Northern Territory’s rise nonetheless signals that smaller jurisdictions can climb fast when structural and policy conditions align.
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