5302.0 - Balance of Payments and International Investment Position, Australia, Dec 2016 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 28/02/2017   
   Page tools: Print Print Page Print all pages in this productPrint All RSS Feed RSS Bookmark and Share Search this Product

ANALYSIS AND COMMENTS


BALANCE OF PAYMENTS

In original current price terms, the December quarter 2016 current account deficit was $4,422m, a fall of $9,372m (68%) on the September quarter 2016 deficit. In original current price terms, the balance on goods and services was a net surplus of $4,121m, primary income was a net deficit of $8,220m and secondary income was a net deficit of $323m.

In original current price terms, the December quarter 2016 capital and financial account surplus was $3,218m, a fall of $8,519m (73%) on the September quarter 2016 surplus. In original current price terms, the capital account was a net deficit of $140m and the financial account was a net surplus of $3,358m.

The contributors to the current account balances, in original terms at current prices, are shown in the following table.

BALANCE OF PAYMENTS, Summary(a): Original

Dec 2015
Mar 2016
Jun 2016
Sep 2016
Dec 2016
$m
$m
$m
$m
$m

CURRENT ACCOUNT
-24 243
-14 227
-11 886
-13 794
-4 422
Goods and services
-13 356
-7 151
-5 514
-5 689
4 121
Credits
79 169
73 913
77 982
82 539
94 549
Debits
-92 525
-81 064
-83 496
-88 228
-90 428
Goods
-10 097
-6 445
-3 816
-4 003
4 979
Credits
61 917
56 366
60 970
64 369
75 745
Debits
-72 014
-62 811
-64 786
-68 372
-70 766
Services
-3 259
-706
-1 698
-1 686
-858
Credits
17 252
17 547
17 012
18 170
18 804
Debits
-20 511
-18 253
-18 710
-19 856
-19 662
Primary income
-10 625
-6 505
-5 907
-7 784
-8 220
Credits
12 807
14 806
15 892
15 504
16 453
Debits
-23 432
-21 312
-21 799
-23 288
-24 673
Secondary income
-262
-571
-465
-321
-323
Credits
2 181
2 122
2 161
2 159
2 170
Debits
-2 443
-2 693
-2 626
-2 480
-2 493
CAPITAL AND FINANCIAL ACCOUNT
24 225
16 362
13 026
11 737
3 218
Capital account
-167
-173
-174
-100
-140
Acquisitions/disposals of non-produced non-financial assets
-
1
27
28
-1
Credits
1
2
29
30
-
Debits
-1
-1
-2
-2
-1
Capital transfers
-167
-174
-201
-128
-139
Credits
-
-
-
-
-
Debits
-167
-174
-201
-128
-139
Financial account
24 392
16 535
13 200
11 837
3 358
Direct investment
25 190
13 724
11 096
10 774
21 146
Assets
21 265
-915
-1 713
1 146
1 744
Liabilities
3 925
14 639
12 808
9 628
19 402
Portfolio investment
13 314
-25 612
-10 369
-11 764
16 606
Assets
-10 011
-13 727
-9 586
-13 745
-702
Liabilities
23 325
-11 885
-783
1 980
17 308
Financial derivatives
-5 322
-3 280
-5 020
-3 622
-193
Assets
34 217
18 142
32 176
43 680
19 157
Liabilities
-39 539
-21 422
-37 196
-47 302
-19 351
Other investment
-9 738
29 925
19 016
15 685
-22 856
Assets
-28 134
27 148
-3 032
12 554
-22 742
Liabilities
18 396
2 777
22 048
3 132
-113
Reserve assets
948
1 777
-1 523
764
-11 346
NET ERRORS AND OMISSIONS
18
-2 134
-1 140
2 057
1 204

- nil or rounded to zero (including null cells)
(a) For sign conventions, see paragraphs 15-17 of the Explanatory Notes.


In seasonally adjusted current price terms, the December quarter 2016 current account deficit was $3,853m, a fall of $6,348m (62%) on the September quarter 2016 deficit.

In trend current price terms, the December quarter 2016 current account deficit was $5,437m, a fall of $4,230m (44%) on the September quarter 2016 deficit.

The contributors to the current account balances, in seasonally adjusted and trend terms at current prices, are shown in the following table.

BALANCE ON CURRENT ACCOUNT IN CURRENT PRICES - December Quarter 2016

Change in:
Current
prices
Current
prices
Current
prices
$m
$m
%

Seasonally Adjusted

Balance on current account
-3 853
6 348
62.2
Balance on goods and services
4 667
8 205
(a) . .
Net goods
5 450
8 284
(a) . .
Net services
-782
-78
-11.1
Net primary income
-8 081
-1 843
-29.5
Net secondary income
-439
-14
-3.3

Trend

Balance on current account
-5 437
4 230
43.8
Balance on goods and services
2 451
4 678
(a) . .
Net goods
3 092
4 359
(a) . .
Net services
-641
320
33.3
Net primary income
-7 454
-439
-6.3
Net secondary income
-434
-9
-2.1

. . not applicable
(a) See paragraph 17 of the Explanatory Notes.



TERMS OF TRADE(footnote 1)

Australia's seasonally adjusted terms of trade on net goods and services for the December quarter 2016 rose 9.1% to 102.9, with an increase of 9.4% in the implicit price deflator (IPD) for goods and services credits and an increase of 0.3% in the IPD for goods and services debits.

In trend terms, the terms of trade for net goods and services rose 6.0% to 101.0.

IMPLICIT PRICE DEFLATOR AND TERMS OF TRADE (a)
Graph: IMPLICIT PRICE DEFLATOR AND TERMS OF TRADE (a)



BALANCE ON GOODS AND SERVICES

In seasonally adjusted chain volume terms, the balance on goods and services was a surplus of $2,124m, a rise of $700m (49%) on the September quarter 2016 surplus of $1,424m.

The net surplus on goods rose $1,010m (62%) on the September quarter 2016 surplus of $1,630m. Goods credits rose $1,825m (3%) and goods debits rose $814m (1%). The net deficit on services rose $311m on the September quarter 2016 deficit of $205m.

The rise in the balance on goods and services surplus, in seasonally adjusted chain volume terms, is expected to contribute 0.2 percentage points to growth in the December quarter 2016 volume measure of GDP, assuming no significant revision to the GDP chain volume estimate for the September quarter 2016.

GOODS AND SERVICES, CHAIN VOLUME MEASURES (a)
Graph: GOODS AND SERVICES, CHAIN VOLUME MEASURES (a)



Goods

The trend estimate of net goods at current prices for the December quarter 2016 was a surplus of $3,092m, a turnaround of $4,359m on the September quarter 2016 deficit of $1,267m.

In seasonally adjusted terms at current prices, net goods was a surplus of $5,450m, a turnaround of $8,284m on the September quarter 2016 deficit of $2,834m.

GOODS, Price and volume analysis: Seasonally adjusted - December Quarter 2016

Change in:
Current
prices
Current
prices
Chain
volume
measures(a)
Implicit
price
deflators(a)(b)
$m
%
%
%

Exports
9 501
14.9
2.6
12.0
Rural goods
665
6.3
8.3
-1.9
Non-rural goods
9 775
20.6
2.6
17.5
Net exports of goods under merchanting
-4
-20.0
-25.9
7.9
Non-monetary gold
-936
-16.2
-9.4
-7.5
Imports
1 217
1.8
1.2
0.6
Consumption goods
-59
-0.2
-
-0.2
Capital goods
1 044
6.6
8.4
-1.6
Intermediate and other merchandise goods
713
2.8
-0.5
3.3
Non-monetary gold
-481
-25.5
-19.3
-7.7

- nil or rounded to zero (including null cells)
(a) Reference year 2014-15.
(b) Movements in indexes are based on data to four decimal places.



GOODS CREDITS

The trend estimate of goods credits at current prices rose $5,196m (8%) to $70,708m in the December quarter 2016.

In seasonally adjusted terms at current prices, goods credits rose $9,501m (15%) to $73,406m, with volumes up 3% and prices up 12%.


Rural Goods

Exports of rural goods, in seasonally adjusted terms at current prices, rose $665m (6%) to $11,269m, with volumes up 8% and prices down 2%.

The main components contributing to the rise were:
  • other rural, up $596m (12%), with volumes up 13% and prices down 1%
  • meat and meat preparations, up $66m (3%), with volumes up 5% and prices down 3%.


Non-rural Goods

Exports of non-rural goods, in seasonally adjusted terms at current prices, rose $9,775m (21%) to $57,287m, with volumes up 3% and prices up 18%.

The main components contributing to the rise were:
  • coal, coke and briquettes, up $5,758m (61%), with volumes up 1% and prices up 59%
  • metal ores and minerals, up $2,554m (14%), with volumes up 3% and prices up 10%
  • other mineral fuels, up $1,040m (18%), with volumes up 8% and prices up 10%.

SELECTED MAJOR COMMODITIES, CURRENT PRICES(a)
Graph: SELECTED MAJOR COMMODITIES, CURRENT PRICES(a)



Net Exports of Goods Under Merchanting

Net exports of goods under merchanting, in seasonally adjusted terms at current prices, fell $4m (20%), with volumes down 26% and prices up 8%.


Non-monetary Gold

Non-monetary gold, in original and seasonally adjusted terms at current prices, fell $936m (16%), with volumes down 9% and prices down 8%.


GOODS DEBITS

The trend estimate of goods debits at current prices rose $838m (1%) to $67,617m in the December quarter 2016.

In seasonally adjusted terms at current prices, goods debits rose $1,217m (2%) to $67,956m, with volumes up 1% and prices up 1%.


Consumption Goods

Imports of consumption goods, in seasonally adjusted terms at current prices, fell $59m to $23,583m.

The main component contributing to the fall was non-industrial transport equipment, down $149m (3%), with volumes down 2%.

Partly offsetting this fall was textiles, clothing and footwear, up $100m (2%), with volumes up 4% and prices down 1%.


Capital Goods

Imports of capital goods, in seasonally adjusted terms at current prices, rose $1,044m (7%) to $16,760m, with volumes up 8% and prices down 2%.

The main components contributing to the rise were:
  • capital goods n.e.s., up $573m (21%), with volumes up 27% and prices down 5%
  • industrial transport equipment n.e.s., up $367m (16%), with volumes up 15% and prices up 1%
  • civil aircraft and confidentialised items, up $137m (20%), with volumes up 20%.


Intermediate and Other Merchandise Goods

Imports of intermediate and other merchandise goods, in seasonally adjusted terms at current prices, rose $713m (3%) to $26,210m, with prices up 3%.

The main components contributing to the rise were:
  • fuels and lubricants, up $508m (8%), with volumes down 3% and prices up 12%
  • iron and steel, up $102m (17%), with volumes up 16% and prices up 2%
  • primary industrial supplies n.e.s., up $101m (22%), with volumes up 13% and prices up 8%.


Non-monetary Gold

Imports of non-monetary gold, in original and seasonally adjusted terms at current prices, fell $481m (26%), with volumes down 19% and prices down 8%.


SERVICES

The trend estimate of net services at current prices was a deficit of $641m, a fall of $320m (33%) on the September quarter 2016 deficit of $961m.

In seasonally adjusted terms at current prices, net services was a deficit of $782m, a rise of $78m (11%) on the September quarter 2016 deficit of $704m.

SERVICES, Price and volume analysis: Seasonally adjusted - December Quarter 2016

Change in:
Current
prices
Current
prices
Chain
volume
measures(a)
Implicit
price
deflators(a)(b)
$m
%
%
%

Exports
166
0.9
0.6
0.3
Manufacturing services on physical inputs owned by others
4
80.0
79.7
0.2
Maintenance and repair services n.i.e.
-13
-54.2
-54.2
0.1
Transport
52
2.8
3.4
-0.6
Travel
180
1.6
1.1
0.5
Other services
-58
-1.1
-1.3
0.2
Imports
244
1.3
2.3
-1.0
Manufacturing services on physical inputs owned by others
-
-
-
-
Maintenance and repair services n.i.e.
-18
-9.4
-8.5
-1.0
Transport
207
5.1
4.8
0.3
Travel
-14
-0.2
1.2
-1.4
Other services
69
1.1
2.3
-1.1

- nil or rounded to zero (including null cells)
(a) Reference year 2014-15.
(b) Movements in indexes are based on data to four decimal places.



Services Credits

Services credits, in seasonally adjusted terms at current prices, rose $166m (1%) to $18,414m, with volumes up 1%.

The main components contributing to the rise were:
  • travel, up $180m (2%), with volumes up 1% and prices up 1%
  • transport, up $52m (3%), with volumes up 3% and prices down 1%.

Partly offsetting these rises was other services, down $58m (1%), with volumes down 1%.

In seasonally adjusted terms, tourism related services credits rose $197m (2%) to $11,995m.


Services Debits

Services debits, in seasonally adjusted terms at current prices, rose $244m (1%) to $19,196m, with volumes up 2% and prices down 1%.

The main components contributing to the rise were:
  • transport, up $207m (5%), with volumes up 5%
  • other services, up $69m (1%), with volumes up 2% and prices down 1%.

In seasonally adjusted terms, tourism related services debits rose $15m to $10,289m.


PRIMARY INCOME

The trend estimate of the net primary income deficit at current prices rose $439m (6%) to $7,454m in the December quarter 2016.

In seasonally adjusted terms at current prices, the net primary income deficit rose $1,843m (30%) to $8,081m in the December quarter 2016.

NET PRIMARY INCOME
Graph: NET PRIMARY INCOME



Primary Income Credits

Primary income credits, in seasonally adjusted terms at current prices, rose $829m (5%) to $16,665m. The main component contributing to the rise was direct investment assets, income on equity and investment fund shares, up $509m (7%).


Primary Income Debits

Primary income debits, in seasonally adjusted terms at current prices, rose $2,672m (12%) to $24,746m. The main component contributing to the rise was direct investment liabilities, investment income on equity and investment fund shares, up $1,436m (19%).


SECONDARY INCOME

The trend estimate of the net secondary income deficit at current prices rose $9m (2%) to $434m in the December quarter 2016.

In seasonally adjusted terms at current prices, the net secondary income deficit rose $14m (3%) to $439m in the December quarter 2016.


CAPITAL ACCOUNT

In original terms, the capital account deficit was $140m, an increase of $40m (40%) on the September quarter 2016 deficit of $100m. Capital account credits decreased $30m and capital account debits increased $10m (8%) in the December quarter 2016.


FINANCIAL ACCOUNT

The balance on the financial account, in original terms, recorded a net inflow of $3.4b, which was driven by a net inflow of equity of $29.7b and a net outflow of debt of $26.4b.

The financial account surplus decreased $8.5b (72%) from $11.8b to $3.4b in the December quarter 2016.


Direct Investment

Direct investment recorded a net inflow of $21.1b in the December quarter 2016, an increase of $10.4b on the net inflow of $10.8b in the September quarter 2016, where:
  • direct investment liabilities recorded an inflow of $19.4b, an increase of $9.8b on the inflow of $9.6b in the September quarter 2016
  • direct investment assets recorded an inflow of $1.7b, an increase of $0.6b on the inflow of $1.1b in the September quarter 2016.


Portfolio Investment

Portfolio investment recorded a net inflow of $16.6b in the December quarter 2016, a turnaround of $28.4b on the net outflow of $11.8b in the September quarter 2016, where:
  • equity investment fund shares recorded a net inflow of $6.5b in the December quarter 2016, a turnaround of $7.7b on the net outflow of $1.2b in the September quarter 2016
  • debt securities recorded a net inflow of $10.1b in the December quarter 2016, a turnaround of $20.7b on the net outflow of $10.5b in the September quarter 2016.


Financial Derivatives

Financial derivatives recorded a net outflow of $0.2b in the December quarter 2016, a decrease of $3.4b on the net outflow of $3.6b in the September quarter 2016.


Other Investment

Other investment recorded a net outflow of $22.9b in the December quarter 2016, a turnaround of $38.5b on the net inflow of $15.7b in the September quarter 2016. This was driven by net outflows in loans of $13.2b and in currency and deposits of $4.9b.


Reserve Assets

Reserve assets recorded an outflow of $11.3b in the December quarter 2016, a turnaround of $12.1b on the inflow of $0.8b in the September quarter 2016.


INTERNATIONAL INVESTMENT POSITION (IIP)

Australia's net IIP liability position was $1,021.6b at 31 December 2016, a decrease of $19.8b (2%) on the revised 30 September 2016 position of $1,041.4b. Australia's net foreign debt liability decreased $25.6b (2%) to $1,023.1b. Australia's net foreign equity asset decreased $5.8b (80%) to $1.4b at 31 December 2016.

The changes contributing to this result are shown in the following table.

INTERNATIONAL INVESTMENT POSITION, By Net Foreign Equity and Net Foreign Debt

Changes in position reflecting
Position at
beginning
of period
Trans-
actions
Price
changes
Exchange
rate
changes
Other
adjustments
Position
at end
of period
$m
$m
$m
$m
$m
$m

Net International Investment Position
Jun 2016
1 009 150
13 200
27 103
-10 991
-1 034
1 037 428
Sep 2016
1 037 428
11 837
-23 873
18 603
-2 584
1 041 412
Dec 2016
1 041 412
3 358
-15 066
-6 439
-1 653
1 021 612
Net Foreign Equity
Jun 2016
-16 695
3 490
16 614
-13 699
-1 249
-11 538
Sep 2016
-11 538
10 054
-26 554
27 273
-6 433
-7 198
Dec 2016
-7 198
29 731
612
-20 864
-3 724
-1 443
Net Foreign Debt
Jun 2016
1 025 844
9 709
10 490
2 708
215
1 048 966
Sep 2016
1 048 966
1 783
2 681
-8 670
3 849
1 048 610
Dec 2016
1 048 610
-26 374
-15 678
14 425
2 071
1 023 055




SUPPLEMENTARY INFORMATION

CONDITIONS

The conditions in the global economy showed modest growth in Australia’s major trading partner countries in the December quarter 2016. According to the Organisation for Economic Cooperation and Development (OECD)(footnote 2) , preliminary growth rates compared to last quarter in seasonally adjusted terms showed quarterly growth for China (1.7%), Indonesia (1.2%), UK (0.6%), USA (0.5%), Euro 28 (0.5%) and South Korea (0.4%).
  • foreign asset transactions were -$13.9b in the December quarter 2016 compared to $44.4b in the September quarter 2016
  • foreign liability transactions were $17.2b in the December quarter 2016 compared to -$32.6b in the September quarter 2016.

The Australian share market, as measured by the MSCI global index(footnote 3) , increased 5.4% in December quarter 2016, following an increase of 3.8% in September quarter 2016. Increases were recorded in Japan (14.9%), France (9.4%), Germany (8.1%), Canada (4.8%), the UK (3.4%), the USA (3%), Singapore (1.5%) and Switzerland (0.8%). Decreases were recorded in Hong Kong (9.3%), New Zealand (7.1%) and Europe ex. UK (0.4%). A market price change of -$17.7b was recorded for foreign equity assets and $18.3b in foreign equity liabilities in the December quarter 2016.

According to Bloomberg(footnote 4) , the composite corporate benchmark yield increased in the USA from 2.87% to 3.42%, the UK from 1.99% to 2.35%, Germany from 0.70% to 0.93%, Japan from 0.18% to 0.25%, and Australia from 2.93% to 3.54%. The long-term 10 year government bond yields increased in the USA from 1.60% to 2.45%, the UK from 0.75% to 1.24%, Germany from -0.19% to 0.11% and Japan from -0.08% to 0.05% over the December quarter 2016. In Australia, the rate increased from 1.99% to 2.79%. A market price change of $2.4b was recorded for portfolio debt securities assets and -$23.3b in portfolio debt securities liabilities in the December quarter 2016.

The Australian dollar depreciated against the majority of the major currencies in the December quarter 2016. The Australian dollar depreciated 5.16% against the US dollar, 5.15% against the Hong Kong dollar, 3.25% against the Indian rupee, 2.79% against the Canadian dollar, 2.34% against the Taiwan dollar, 2.08% against the Thai baht, 1.94% against the Indonesian rupiah, 1.19% against the Chinese renminbi and 0.83% against the New Zealand dollar. It appreciated 9.52% against the Japanese yen, 4.3% against the South Korean won, 2.71% against the Malaysian ringgit, 1.03% against the Euro, 0.51% against the Singapore dollar, 0.18% against the Swiss franc and 0.1% against the UK pound sterling. The Trade-weighted Index (TWI)(footnote 4,footnote 5) remained unchanged at 63.90 in the December quarter 2016. These movements were reflected in exchange rate changes for foreign assets of -$44.4b and foreign liabilities of $38.0b in the December quarter 2016.


RELATIONSHIP BETWEEN IPD, EPI AND IPI(footnote 6)

In original terms, the IPD for total goods credits rose 12.7% and the chain Laspeyres price index for goods exports rose 13.1%. The Export Price Index (EPI)(footnote 7) rose 12.4% during the December quarter 2016.

In original terms, the IPD for total goods debits rose 0.7% and the chain Laspeyres price index for goods imports rose 0.3%. The Import Price Index (IPI)(footnote 7) rose 0.2% during the December quarter 2016.

Differences between the IPD and International Trade Price Indexes can arise due to a number of methodological factors including differences in pricing points, timing, coverage and weights.

GOODS AND SERVICES, Price comparison - December Quarter 2016

Change in:
Seasonally adjusted
Original
Implicit
price
deflators(a)
Implicit
price
deflators(a)
International
trade price
indexes(b)
Chain
Laspeyres
price
indexes(a)
%
%
%
%

Exports
Goods
12.0
12.7
12.4
13.1
Services
0.3
0.3
na
0.4
Imports
Goods
0.6
0.7
0.2
0.3
Services
-1.0
-1.0
na
-0.9

na not available
(a) Reference year 2014-15 = 100.
(b) Source: International Trade Price Indexes, Australia (cat. no. 6457.0).

IMPLICIT PRICE DEFLATORS AND INTERNATIONAL TRADE PRICE INDEXES
Graph: IMPLICIT PRICE DEFLATORS AND INTERNATIONAL TRADE PRICE INDEXES



Commodity Price Indexes

The RBA Commodity Price Index (average monthly index) for rural commodities decreased 3.2% between the September quarter 2016 and the December quarter 2016 while the EPI for rural goods decreased 1.9%.

The RBA Commodity Price Index for non-rural commodities increased 18.7% while the EPI for non-rural goods total (excluding non-monetary gold) increased 18.0%.

Differences between the RBA Commodity Price Index and ABS price measures are largely a consequence of methodological differences used in the construction of the respective indexes, including coverage of included commodities and timing of source data.


CALENDAR YEAR 2016 SITUATION

CURRENT ACCOUNT

In original terms, the balance on current account in 2016 was a deficit of $44.3b, a decrease of $33.4b (43%) on the deficit of $77.8b recorded in 2015. The balance on goods and services was a deficit of $14.2b, a decrease of $22.8b (62%) on the deficit of $37.0b recorded in 2015.

The 2016 goods deficit of $9.3b was a decrease of $16.1b (63%) on the deficit of $25.4b in 2015.

The 2016 services deficit of $4.9b was a decrease of $6.7b (57%) on the deficit of $11.6b in 2015.

The 2016 net primary income deficit decreased $10.5b (27%), with an increase in primary income credits of $11.4b (22%) and an increase in primary income debits of $0.9b (1%).

The 2016 net secondary income deficit decreased $0.2b (10%), with an increase in secondary income credits of $0.1b (1%) and a decrease in secondary income debits of $0.1b (1%).


FINANCIAL ACCOUNT

The balance on financial account recorded a net inflow of $44.9b, with a net inflow on equity of $47.5b and a net outflow on debt of $2.6b. This result was a decrease of $26.8b on the net inflow of $71.8b recorded for the previous year as a result of:
  • a turnaround of $93.8b from the net inflow to the net outflow on portfolio investment
  • a turnaround of $79.1b from the net outflow to the net inflow on other investment
  • a turnaround of $13.6b from the inflow to the outflow on reserve assets
  • an increase of $8.6b on the net inflow on direct investment
  • an increase of $7.2b on the net outflow on financial derivatives.


INTERNATIONAL INVESTMENT POSITION

Australia's net international investment position as at 31 December 2016 was a net foreign liability of $1,021.6b. This was an increase of $60.9b (6%) on the position a year earlier as a result of:
  • net transactions of $44.9b
  • price changes of -$9.7b
  • exchange rate changes of $33.9b
  • other changes of -$8.3b.

During 2016, Australia's net foreign equity decreased $60.0b (98%) on the previous year, to a net asset position of $1.4b, with net transactions of $47.5b and exchange rate changes of $39.5b partly offset by other changes of -$16.0b and price changes of -$11.0b.

Australia's net foreign debt liability increased $0.9b on the previous year, to a net liability position of $1,023.1b, with other changes of $7.8b and price changes of $1.3b partly offset by exchange rate changes of -$5.6b and net transactions of -$2.6b.

At 31 December 2016, the ratio of Australia's net international investment position to GDP using the latest available GDP figure (for the year ended 30 September 2016 using current prices) was 61.3%. This compares with 58.8% one year ago.

1 In this commentary movements in indexes are based on data to four decimal places. <back
2 OECD Statistics Quarterly National Account, Organisation for Economic Cooperation and Development – Economic Department, viewed 15 February 2017. <back
3 MSCI Global Market Indexes 2016, Morgan Stanley Capital International, viewed 10 January 2017. <back
4 Bloomberg, Bloomberg Professional Service, viewed 13 January 2017. <back
5 Exchange Rates – Daily 2014 to Current, Reserve Bank of Australia - Statistical Tables, viewed 16 January 2017. <back
6 In this commentary movements in indexes are based on data to four decimal places. <back
7 Source: International Trade Price Indexes, Australia (cat. no. 6457.0). <back