Current Account Deficit Down To $3.9 Billion December Quarter 2016

Current Account Deficit Down To $3.9 Billion December Quarter 2016

Australian Bureau Of Statistics

Current Account Deficit Narrows To $3.9 Billion

Victor P Taffa

For the second quarter in succession, higher export commodity prices contributed to a narrowing of the current account deficit in the December quarter 2016, according to latest figures from the Australian Bureau of Statistics (ABS).

Seasonally adjusted current account deficit fell $6,348 Million (62 %) to $3,853 Million in the December quarter 2016. In seasonally adjusted terms, the balance on goods and services surplus in the December quarter 2016 is the highest on record at $4,667 Million.

Exports of goods and services rose $9,668 Million (12 %) and imports of goods and services rose $1,462 Million (2 %). The primary income deficit rose $1,843 Million (30 %).

In volume terms exports grew faster than imports this quarter and so international trade is expected to contribute 0.2 percentage points to growth in the December quarter 2016 Gross Domestic Product. In seasonally adjusted chain volume terms, the balance on goods and services surplus increased $700 Million (49 %) to $2,124 Million.

Australia’s net international investment position was a liability of $1,021.6 Billion at 31 December 2016, decreasing 2 % on the revised 30 September 2016 position of $1,041.4 Billion.

Australia’s net foreign debt liabilities decreased $25.6 Billion (2 %) to a net liability position of $1,023.1 Billion.

Australia’s net foreign equity assets decreased $5.8 Billion (80 %) to a net asset position of $1.4 Billion.