Australia Net Liability Stands At $771.3 Billion September 2010

Australia Net Liability Stands At $771.3 Billion September 2010

Australian Bureau Of Statistics

Increase In Current Account Deficit

Victor P Taffa

Latest ABS figures show that in seasonally adjusted, current price terms, the current account deficit rose $2,417 M to $7,830M in the September Quarter 2010. Exports of goods and services decreased $915 M (1%) and imports of goods and services decreased $118M. The primary income deficit rose $1,663 M (14%).

In seasonally adjusted chain volume terms, there was a turnaround of $1,457 M in net goods and services resulting in a deficit of $68M. This is expected to detract 0.4 percentage points from growth in the September Quarter 2010 volume measure of Gross Domestic Product.

Australia’s net International Investment Position (IIP) rose $4.2 B┬áto a net liability position of $771.3 B in the September Quarter 2010. Australia’s net foreign debt liability decreased $8.3 B to a liability position of $666.0 B. Australia’s net foreign equity liability increased $12.5 B to a liability position of $105.3 B.

September Key Figures

Jun Qtr 2010

Sep Qtr 2010

Jun Qtr 2010 to Sep Qtr 2010

$m

$m

% change


BALANCE ON CURRENT ACCOUNT
Trend estimates

-7, 663

-6, 739

12

Seasonally adjusted

-5, 413

-7, 830

-45

BALANCE ON GOODS AND SERVICES
Trend estimates

5, 371

6, 309

17

Seasonally adjusted

6, 570

5, 773

-12

NET PRIMARY INCOME
Trend estimates

-12, 584

-12, 586

Seasonally adjusted

-11, 503

-13, 166

-14

LEVELS AT END OF PERIOD
International Investment Position

767, 093

771, 312

1

Net foreign equity

92, 788

105, 321

14

Net foreign debt

674, 305

665, 992

-1


– nil or rounded to zero (including null cells)

 

SEPTEMBER KEY POINTS

BALANCE OF PAYMENTS

  • The current account deficit, seasonally adjusted, rose $2,417 M (45%) to $7,830 M in the September Quarter 2010. The surplus on the balance of goods and services fell $797 M (12%) to $5,773 M. The primary income deficit rose $1,663m (14%) to $13,166M.
  • In seasonally adjusted chain volume terms, there was a turnaround on net goods and services of $1,457 m from a surplus of $1,389m in the June Quarter 2010 to a deficit of $68 M in the September Quarter 2010. This is expected to detract 0.4 percentage points from growth in the September Quarter 2010 volume measure of GDP.

INTERNATIONAL INVESTMENT POSITION (IIP)

  • Australia’s net IIP rose $4.2 B to a net liability position of $771.3 B in the September Quarter 2010. Australia’s net foreign debt liability decreased $8.3 B to a liability position of $666.0 B. Australia’s net foreign equity liability increased $12.5 B to a liability position of $105.3 B.