Australian Bureau of Statistics
Current Account Deficit Decreases To $10.5 Billion
Victor P Taffa
Australia’s current account deficit in seasonally adjusted terms decreased by more than $4 Billion in the March quarter 2018 driven mainly by increased goods exports, according to latest figures from the Australian Bureau of Statistics (ABS).
Seasonally adjusted current account deficit fell $4,192 Million to $10,469 Million in the March quarter 2018. This follows an increase in the December quarter 2017 of $3,010 Million.
Balance on goods and services surplus in the March quarter 2018 was $4,083 Million, a turnaround of $5,105 Million from a deficit of $1,022 Million in the December quarter 2017.
Exports of goods and services rose $7,063 Million (7 %) and imports of goods and services rose $1,958 Million (2 %). The net primary income deficit widened by $1,025 Million to $14,253 Million in the March quarter 2018.
In volume terms, exports rose stronger than imports this quarter, and as a result international trade is expected to contribute 0.3 percentage points to growth in the March quarter 2018 Gross Domestic Product. In seasonally adjusted chain volume terms, the balance on goods and services deficit decreased $1,514 Million, narrowing the deficit to $12,761 Million.
Australia’s net international investment position was a liability of $954.6 Billion at 31 March 2018, a decrease of $34.1 Billion on the revised 31 December 2017 position of $988.6 Billion.
Australia’s net foreign equity assets increased $35.7 Billion to $71.3 Billion. Australia’s net foreign debt liability increased $1.7 Billion to $1,025.8 Billion at 31 March 2018.