Australia current account deficit widened to AUD $14 billion in fourth quarter

Australia current account deficit widened to AUD 14 billion, beating the estimated rise to AUD 12.6 billion from the previous quarter's print of AUD 9.1 billion

December key points (Source ABS)

Balance of Payments

• The current account deficit, seasonally adjusted, rose $3,011m to $14,024m in the December quarter 2017. There was a turnaround of $2,094m on the balance on goods and services, resulting in a deficit of $117m in the December quarter 2017. The primary income deficit rose $899m to $13,666m.
• In seasonally adjusted chain volume terms, the deficit on goods and services rose $2,064m from $11,017m in the September quarter 2017 to $13,081m in the December quarter 2017. This is expected to detract 0.5 percentage points from growth in the December quarter 2017 volume measure of GDP.

INTERNATIONAL INVESTMENT POSITION (IIP)

• Australia's net IIP liability position was $986.2b at 31 December 2017, an increase of $27.8b (3%) on the revised 30 September 2017 position of $958.4b. Australia's net foreign debt liabilities increased $19.6b (2%) to $1,010.0b. Australia's net foreign equity assets decreased $8.3b (26%) to $23.8b at 31 December 2017.