5302.0 - Balance of Payments and International Investment Position, Australia, Mar 2010
Quality Declaration

ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 31/05/2010
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ANALYSIS AND COMMENTS
In seasonally adjusted current price terms, the current account deficit fell $1,917m (10%) to $16,551m between the December quarter 2009 and March quarter 2010 where:
Goods and Services The trend estimate of the balance on goods and services at current prices was a deficit of $5,553m, an increase of $666m (14%) on the December quarter 2009 deficit. In seasonally adjusted terms, the balance on goods and services was a deficit of $4,618m, a decrease of $989m (18%) on the December quarter 2009 deficit where:
The decrease in the goods deficit resulted from an increase in goods credits (exports), up $1,724m (4%) exceeding an increase in goods debits (imports), up $766m (2%). Contributing to the increase in goods credits were:
Contributing to the increase in goods debits were:
Partly offsetting these increases was non-monetary gold, down $365m (21%). The decrease in the services deficit resulted from an increase in services credits, up $390m (3%) exceeding the increase in services debits, up $358m (3%). In seasonally adjusted volume terms, the balance on goods and services was a deficit of $7,983m, an increase of $1,503m (23%) on the December quarter 2009 deficit. The net deficit on goods increased $1,320m (28%). Goods credits fell $637m (1%) and goods debits rose $683m (1%). The net services balance was a deficit of $1,914m, an increase of $184m (11%) on the December quarter 2009 deficit. The increase of $1,503m in the deficit on goods and services in seasonally adjusted volume terms is expected to detract 0.5 percentage points from growth in the March quarter 2010 volume measure of GDP, assuming no significant revision to the GDP chain volume estimate for the December quarter 2009. Goods Credits The trend estimate of goods credits at current prices rose $752m (2%) to $46,437m in the March quarter 2010. In seasonally adjusted terms at current prices, goods credits rose $1,724m (4%) to $47,417m. Exports of rural goods, in seasonally adjusted terms at current prices, rose $430m (7%) to $6,363m, with volumes up 3% and prices up 4%. The largest increases were in:
Exports of non-rural goods, in seasonally adjusted terms at current prices, rose $1,289m (4%) to $37,648m, with volumes down 2% and prices up 6%. The largest increases were in:
These increases were partly offset by coal, coke and briquettes, down $593m (7%), with volumes down 10% and prices up 3%. Net exports of goods under merchanting, in seasonally adjusted terms at current prices, rose $24m (53%) to $69m, with volumes up 47% and prices up 5%. Exports of non-monetary gold, in seasonally adjusted terms at current prices, fell $20m (1%) to $3,336m, with volumes down 1% and prices up 1%. Goods Debits The trend estimate of goods debits at current prices rose $1,129m (2%) to $51,364m in the March quarter 2010. In seasonally adjusted terms at current prices, goods debits rose $766m (2%) to $51,456m. Imports of consumption goods, in seasonally adjusted terms at current prices, rose $336m (2%) to $15,530m, with volumes up 1% and prices up 2%. The largest increases were in:
Partly offsetting these increases was household electrical items, down $111m (8%), with volumes down 13% and prices up 5%. Imports of capital goods, in seasonally adjusted terms at current prices, rose $177m (1%) to $12,011m with volumes up 2%. The largest increases were in:
Partly offsetting these increases was machinery and industrial equipment, down $95m (3%), with volumes down 3% and prices up 1%. Imports of intermediate and other merchandise goods, in seasonally adjusted terms at current prices, rose $619m (3%) to $22,502m with volumes up 3%. The largest increases were in:
Imports of non-monetary gold, in seasonally adjusted terms at current prices, fell $365m (21%) to $1,413m, with volumes down 22% and prices up 2%. Services The trend estimate of net services at current prices was a deficit of $626m, an increase of $290m (86%) on the revised December quarter 2009 deficit of $336m. In seasonally adjusted terms at current prices, net services recorded a deficit of $578m, a decrease of $32m (5%) on the revised December quarter 2009 deficit of $610m. Services credits, in seasonally adjusted terms at current prices, rose $390m (3%) to $13,660m. The largest increases were in:
Services debits, in seasonally adjusted terms at current prices, rose $358m (3%) to $14,238m. The largest increases were in:
In seasonally adjusted terms at current prices, tourism related services credits rose $189m (2%) to $9,223m, and tourism related services debits rose $47m (1%) to $7,570m. IMPLICIT PRICE DEFLATOR(footnote 1) In seasonally adjusted terms, the implicit price deflator (IPD) for total goods and services credits rose 4.1%. In original terms, it increased 4.0% and the chain Laspeyres price index for goods and services credits rose 4.0%. In original terms, the IPD for goods credits rose 5.0% and the IPD for services credits rose 0.3%. In seasonally adjusted terms, the IPD for total goods and services debits remained steady. In original terms, it decreased 0.1% while the chain Laspeyres price index for goods and services debits remained steady. In original terms, the IPD for goods debits rose 0.1% and the IPD for services debits fell 0.9%. Relationship to IPI and EPI In original terms, the implicit price deflator (IPD) for total goods credits rose 5.0% and the chain Laspeyres price index for goods exports rose 5.1%. The export price index (EPI) rose 3.8% during the March quarter 2010. The difference between the EPI and IPD is mainly driven by other mineral fuels. Differences in these two measures result from differences in pricing points, coverage and weights. In original terms, the implicit price deflator for total goods debits rose 0.1% and the chain Laspeyres price index for goods imports rose 0.3%. The import price index (IPI) rose 0.3% during the March quarter 2010. Terms of Trade Australia's seasonally adjusted terms of trade rose 4.2% to 105.3 with an increase of 4.1% in the IPD for goods and services credits and the goods and services debits IPD remained steady. The trend estimate of the terms of trade increased 3.6% to 104.6. Primary Income The trend estimate of the net primary income deficit increased $306m (3%) from $11,598m in the December quarter 2009 to $11,904m in the March quarter 2010. In seasonally adjusted terms the net primary income deficit decreased $945m (7%) from $12,699m in the December quarter 2009 to $11,754m in the March quarter 2010. Primary income credits increased $1,634m (21%) to $9,531m and primary income debits increased $689m (3%) to $21,285m. The main contributors to the increase in primary income credits were:
The main contributors to the increase in primary income debits were:
In original terms the primary income deficit decreased $901m (7%) to $11,390m in the March quarter 2010. Primary income credits increased $1,936m (25%) to $9,680m and primary income debits increased $1,033m (5%) to $21,069m. Secondary Income In seasonally adjusted terms, the net secondary income balance was a deficit of $180m, an increase of $18m (11%) on the December quarter 2009 deficit of $162m. Secondary income credits rose $13m (1%) and secondary income debits rose $30m (2%) in the March quarter 2010. CAPITAL ACCOUNT In original terms, the capital account deficit was $37m, up $13m (54%) on the December quarter 2009 deficit of $24m. FINANCIAL ACCOUNT The balance on financial account recorded a net inflow of $15.3b, with a net inflow $20.3b of debt and a net outflow of $4.9b of equity. The financial account surplus decreased $4.7b from $20.0b in the December quarter 2009 to $15.3b in the March quarter 2010 in line with the decrease in the current account deficit, which fell $4.0b from $19.6b last quarter to $15.6b this quarter. Net debt securities issued decreased $9.7b from $53.4b in the December quarter 2009 to $43.7b in the March quarter 2010. The main contributors were:
Direct investment recorded a net inflow of $5.1b in the March quarter 2010, an increase of $0.4b from the net inflow of $4.7b in the December quarter 2009, where:
Portfolio investment recorded a net inflow $21.5b, an increase of $6.4b on the net inflow of $15.1b in the December quarter 2009. This was driven by:
Financial derivatives recorded a net inflow of $8.1b, a turnaround from the net outflow of $7.8b in the December quarter 2009. Other investment recorded a net outflow of $22.7b, a turnaround of $29.5b from a net inflow of $6.8b in the December quarter 2009. INTERNATIONAL INVESTMENT POSITION INTERNATIONAL INVESTMENT Australia's net international investment position at 31 March 2010 was a net foreign liability of $757.2b, down $5.5b (1%) on 31 December 2009 figure of $762.7b. The decrease consisted of:
During the March quarter 2010 Australia's net foreign equity liabilities fell $11.3b (10%) to $103.0b. This decrease was due to:
During the March quarter 2010 Australia's net foreign debt liability increased $5.8b (1%) to $654.3b. This increase was due to:
1 In this commentary movements in indexes are based on data to four decimal places. <back Document Selection These documents will be presented in a new window.
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