Given the events of recent weeks and months, I would like to take this opportunity to provide an update on the outlook for the Territory economy.

The fundamentals of our economy remain strong.

Seasonally adjusted State Final Demand - or SFD - grew by 3.3 per cent in the March quarter 2011 - this was the strongest growth rate in the country.

In the nine months to March 2011, SFD grew by a solid 6 per cent – the strongest three-quarter growth rate since the June quarter 2007 - and the strongest growth compared to other jurisdictions.

We experienced the equal-lowest consumer price inflation of the capital cities in 2010-11 at 2.7 per cent.

The ACT labour market performs well compared with other jurisdictions.

We have the lowest unemployment rate in Australia.

It was 4 per cent in July 2011, well below the national average, and we have the highest participation rate at 72.5 per cent.

Our housing market also continues to perform well.

Current housing indicators point to stabilising growth, after the peaks which occurred following the Commonwealth Government’s stimulus measures.

The trend of housing finance commitments for owner occupiers in the ACT remained above its five-year average in June 2011.

The value of housing finance commitments for individual investors for new and existing dwellings increased again in June 2011 for the third consecutive month.

It too remains above its five-year monthly average.

The Government’s policies and programs are working to keep our economy strong.

Year-on-year to the March quarter 2011, dwelling investment increased by 26.1 per cent - and dwelling investment was the second largest contributor to SFD growth.

Data shows residential investment remains strong, with residential building approvals in the ACT increasing to a record level in June 2011.

This was the ninth consecutive monthly increase, and approvals remain significantly above their five-year monthly average.

The number of ACT residential building approvals rose by 28.7 per cent year-on-year to June 2011.

Nationally, it decreased by 5.1 per cent.

Through a range of initiatives in the 2011-12 Budget, the Government continues to release more residential land.

Over the next four years, the Land Release Program aims to deliver 18,500 residential dwelling sites.

Strong population growth in the Territory is also supporting our economy.

The ACT’s residential population increased by 2 per cent in the year ending 31 December 2010.

This is the highest annual growth in two decades.

Compared to other jurisdictions, it was the second strongest population growth after the mining state of Western Australia...

http://www.andrewbarr.com.au/story/economic-statement-legislative-assembly