Access Economics reported on Monday that the Northern Territory's economic growth rate should experience a resurgence this financial year following the region's output decline of one percent as private sector projects started winding down.

Access said that NT's economy is projected to rebound by four percent this year but cautioned that as federal stimulus spending is being withdrawn in the coming year, the Territory's economy could face some serious challenges.

The report added that the expected pull out of an Army battalion from Adelaide could also dampen the local economy but it noted that the area could take advantage of its promising prospect in gas deposits and should the Inpex project gains traction then NT's next stage of recovery and growth would be further bolstered.

On her part, State Treasurer Delia Lawrie lauded the Access reports, adding that the Territory's growth rate is gaining ground due to the government's stepped up efforts in financing numerous infrastructure projects.

However, opposition leader Terry Mills said that the government should exert more efforts in ensuring that more lands would be made available for the Territory's younger generation, so they can build homes.

Mr Mills conceded that great potentials abound in the Northern Territory but he underscored that "you've got to have a labour market, you've got to have a labour force and they are being squeezed out because of the cost of housing."

He said that most workers on modest incomes in the region were finding it difficult to build their dream homes in a property market that is increasingly becoming less affordable, stressing that "such has serious implications into the future."