Australia’s current account balance fell by $7.9 billion to a deficit of $0.2 billion (seasonally adjusted, current prices) in the September quarter 2023, according to figures released today by the Australian Bureau of Statistics (ABS).
Grace Kim, ABS head of International Statistics, said: “The current account deficit reflected a reduced trade surplus, driven by falls key export commodities prices, while the net primary income deficit narrowed slightly.”
The balance on goods and services fell $8.0 billion to $22.8 billion and the net primary income deficit narrowed $0.4 billion to $22.3 billion. Australia’s terms of trade fell 2.6 per cent.
Exports of goods fell 3.1 per cent driven by falls in prices and quantities for key mining commodities such as coal and LNG.
“The prices of goods exports decreased for the fifth consecutive quarter, down 1.9 percent, driven by coal and agricultural commodities. The price of exported goods was 13.3 per cent lower compared to this time last year,” Ms Kim said.
Exports of services rose for the seventh consecutive quarter, up 2.7 per cent. This was driven by Travel services, reflecting continued recovery in education and personal travel. Student numbers in Australia reached an all-time high that was 4% higher than the September quarter 2019 levels.
Imports of goods and services rose 3.3 per cent driven by Travel services. Travel services imports rose for a third consecutive quarter, as Australians continued to travel overseas. Despite continual growth, Travel services remained 11 per cent below pre-pandemic levels (December quarter 2019).
The increase in imports of goods was driven by Fuels and lubricants as prices rose following production cuts from major oil-producing nations. Imports of Industrial and Non-industrial equipment also contributed to the rise.
| Current account balance ($b) | Net goods & services ($b) | Net primary income ($b) | |
|---|---|---|---|
| Sep-18 | -10.3 | 6.9 | -16.9 |
| Dec-18 | -6.5 | 9.8 | -16.2 |
| Mar-19 | -4.5 | 12.1 | -16.3 |
| Jun-19 | 3.2 | 18.9 | -15.8 |
| Sep-19 | 6.8 | 21.3 | -14.3 |
| Dec-19 | 1.6 | 14.6 | -12.7 |
| Mar-20 | 5.5 | 16.4 | -10.8 |
| Jun-20 | 14.4 | 22.3 | -7.4 |
| Sep-20 | 9.9 | 13.7 | -3.2 |
| Dec-20 | 13.7 | 18.4 | -4.0 |
| Mar-21 | 19.6 | 26.1 | -6.1 |
| Jun-21 | 18.8 | 30.5 | -10.5 |
| Sep-21 | 21.0 | 36.0 | -14.3 |
| Dec-21 | 5.0 | 26.1 | -20.5 |
| Mar-22 | 3.5 | 27.0 | -22.8 |
| Jun-22 | 11.8 | 43.9 | -31.4 |
| Sep-22 | -0.4 | 31.2 | -31.2 |
| Dec-22 | 11.4 | 38.6 | -26.8 |
| Mar-23 | 11.3 | 38.9 | -27.3 |
| Jun-23 | 7.8 | 30.8 | -22.7 |
| Sep-23 | -0.2 | 22.9 | -22.3 |
(a) seasonally adjusted estimates at current prices
The primary income deficit narrowed slightly to $22.3 billion, driven by reduced dividend payments by ASX listed mining companies. This reflected low profit results attributable to increased cost pressures and lower commodity prices over the first half of the year.
| Net primary income ($b) | Primary income credits ($b) | Primary income debits ($b) | |
|---|---|---|---|
| Sep-18 | -16.9 | 16.6 | -33.4 |
| Dec-18 | -16.2 | 16.8 | -33.0 |
| Mar-19 | -16.3 | 17.7 | -34.0 |
| Jun-19 | -15.8 | 16.9 | -32.7 |
| Sep-19 | -14.3 | 16.7 | -30.9 |
| Dec-19 | -12.7 | 17.0 | -29.8 |
| Mar-20 | -10.8 | 16.8 | -27.6 |
| Jun-20 | -7.4 | 14.3 | -21.7 |
| Sep-20 | -3.2 | 15.4 | -18.6 |
| Dec-20 | -4.0 | 14.3 | -18.3 |
| Mar-21 | -6.1 | 15.7 | -21.8 |
| Jun-21 | -10.5 | 15.9 | -26.4 |
| Sep-21 | -14.3 | 17.6 | -31.9 |
| Dec-21 | -20.5 | 18.5 | -39.0 |
| Mar-22 | -22.8 | 20.2 | -43.0 |
| Jun-22 | -31.4 | 23.2 | -54.6 |
| Sep-22 | -31.2 | 22.7 | -53.9 |
| Dec-22 | -26.8 | 24.7 | -51.4 |
| Mar-23 | -27.3 | 22.3 | -49.7 |
| Jun-23 | -22.7 | 23.5 | -46.2 |
| Sep-23 | -22.3 | 25.1 | -47.4 |
(a) seasonally adjusted estimates at current prices
The financial account recorded a surplus of $3.4 billion, driven by net inflows of equity ($6.8 billion) and partly offset by net outflows of debt ($3.4 billion).
The $3.7 billion fall in net trade (seasonally adjusted, chain volume measure) is expected to detract 0.6 percentage points from the September quarter 2023 GDP quarterly movement.
Australia’s net international investment liability position was $814.7 billion this quarter, a decrease of $27.8 billion. The rise in Australia’s foreign assets outpaced the rise in foreign liabilities.
Australia’s net foreign equity asset position rose by $25.0 billion to $351.9 billion. Australia’s net foreign debt liability position fell by $2.8 billion to $1,166.6 billion.
