Australia: Q3 current account deficit shrinks as export earnings advance - Westpac
Andrew Hanlan, Research Analyst at Westpac, explains that the Australia's current account deficit (CAD) narrowed in the September quarter and remains well contained with a print of $10.7bn in the September quarter, a $2.8bn improvement on the previous quarter.
Key Quotes
“As a share of the economy, the CAD deficit represents 2.2% of GDP which is well below the post 1990s average of 4.2%.”
“An improved trade performance on higher export earnings was key to the smaller current account deficit. The trade surplus lifted to $6.6bn in the period, up from $2.8bn three months earlier.”
“The trade surplus represents a sizeable 1.4% of GDP. Since the mid-1970s there have been only 6 instances when the surplus has been 1.3% of GDP or more (three of which have occurred since the end of 2016).”
The terms of trade advanced by 0.8% in the quarter and rose by 2.7% over the past year. Notably, the terms of trade is now 20% above the low at the start of 2016.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
