Record current account surplus for Australia

Australia’s current account surplus in seasonally adjusted terms increased $8.7 billion to $17.7 billion in the June quarter 2020, driven mainly by increased goods and services surplus, according to latest figures from the Australian Bureau of Statistics (ABS).

Current account components

Branko Vitas, Program Manager of the International Statistics Branch said: “The balance on goods and services surplus in the June quarter 2020 was $23.9 billion, a rise of $4.7 billion on the March quarter 2020 surplus of $19.1 billion. Exports of goods and services fell $9.3 billion (8 per cent) and imports of goods and services fell $14.0 billion (14 per cent). The net primary income deficit narrowed by $4.3 billion to $5.6 billion in the June quarter 2020”.

Balance on goods and services in volume terms

In volume terms, imports fell more than exports this quarter, and as a result international trade is expected to contribute 1.0 percentage points to growth in the June quarter 2020 Gross Domestic Product. In seasonally adjusted chain volume terms, the balance on goods and services surplus increased $5.0 billion, widening the surplus to $15.6 billion.

On the imports side, travel services fell $8.2 billion and transport services fell $1.2 billion in original terms, while non-industrial transport equipment fell $2.7 billion and fuels and lubricants fell $1.2 billion in seasonally adjusted terms. On the exports side, travel services fell $6.3 billion and transport services fell $0.9 billion in original terms, while coal, coke and briquettes fell $1.3 billion and metal ores and minerals rose $1.2 billion in seasonally adjusted terms.

International investment position

Australia’s net international investment position was a liability of $910.6 billion at 30 June 2020, an increase of $59.3 billion (7 per cent) on the revised 31 March 2020 position of $851.3 billion

Australia’s net foreign equity assets decreased $134.4 billion to $182.9 billion. Australia’s net foreign debt liability decreased $75.2 billion to $1,093.5 billion at 30 June 2020.

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