| Mar 22 ($m) | Jun 22 ($m) | |
|---|---|---|
| Balance on current account (b) | 2,774 | 18,324 |
| Balance on goods and services (b) | 26,746 | 43,085 |
| Net primary income (b) | -23,241 | -23,950 |
| Capital and financial account | -7,567 | -18,883 |
| International investment position (c) | 853,488 | 834,393 |
(a) Trend series is not published from June Quarter 2019.
(b) Seasonally adjusted.
(c) Levels at end of period.
The Current account surplus increased by $18.3 billion in the June 2022 quarter, recording the 13th consecutive surplus. The increase was driven by an increase in the balance on goods and services which rose by $16.3 billion to $43.1 billion, the highest level on record.
Higher prices for Australian commodity exports resulted in a 4.6 per cent rise in the terms of trade, with the index reaching 130.7, the highest level on record.
Annual exports of Coal, coke and briquettes exceeded $100 billion for the first time over the 2021-22 financial year. The recovery of Travel services, following the reopening of Australia’s international border earlier in the year, also contributed to the rise in exports.
The net primary income deficit widened to $24.0 billion driven by high dividend payments to non-residents as profits remained strong on the back of higher commodity prices.
The capital and financial account recorded a deficit of $18.9b during the June 2022 quarter driven by a financial account deficit of $18.7b. The deficit was driven by a net outflow in both Currency and deposits and Loans following increased foreign demand for Australian currency.
Australia's net IIP liability decreased $19.1b to $834.4b at 30 June 2022 driven by a net foreign equity asset position increase of $34.3b and partly offset by a net foreign debt liability position increase of $15.2b.
(a) Seasonally adjusted estimates at current prices.
COVID-19 in this publication
Suspension of trend estimates
The trend series attempts to measure underlying behaviour of international trade activity. In the short term, this measurement will be significantly affected by the current COVID-19 pandemic and subsequent changes to regular patterns in international trade that will occur during this time. If the trend estimates in this publication were to be calculated without fully accounting for this unusual event, they would provide a misleading view of underlying international trade activity.
It may be some time before the underlying trend in international trade activity can be accurately estimated. The trend series has therefore been suspended from June quarter 2019 and will be reinstated when more certainty emerges in the underlying trend in international trade.
Seasonal adjustment and COVID-19
International Accounts uses the concurrent seasonal adjustment method, meaning that seasonal factors are re-estimated each time new data becomes available. If not appropriately accounted for, unusual events, such as COVID-19, can distort estimates calculated using this method. From March quarter 2020, seasonal factors for series with significant and prolonged impacts from COVID-19 will be calculated using the forward factor method.
The ABS has advised users that it had moved to using forward factors for seasonal analysis of a number of series, including Travel Services. Current ABS (and international practice) requires at least three years of data to assess whether a change in the seasonal pattern has occurred. Should COVID-19 result in a long-term change to the seasonal pattern then revisions to these series may occur in the future. The ABS will consult with users on any future methods changes to seasonal adjustment and potential revisions.
For more information on interpreting seasonally adjusted estimates of International travel services please see the May 2020 feature article International Travel Services time series which outlines the matter in greater detail.
Changes in this issue
Enhancing quarterly Trade in Services statistics
The ABS is enhancing the quarterly international trade in services statistics. Further information on the enhancements and publication changes can be found in the attached article.
A summary of the implications to the current publication are:
- The ABS has made changes to include the most up to date international trade in services data in the Balance of Payments and International Investment Position, Australia publication. These changes mean the quarterly estimates will not equal the sum of the three months that have been published in the International Trade in Goods and Services, Australia publication, however, the quarterly estimates will be of a higher quality.
- From the June 2022 reference quarter, the full suite of quarterly international trade in services data will be available from the Balance of Payments and International Investment Position, Australia publication for the current reference quarter.
Revisions to Travel Services debits
As outlined in the June 2022 International Trade in Goods and Services, Australia publication, this issue of the quarterly Balance of Payments and International Investment Position incorporates revisions to the Travel Services debits series following a review of the annual benchmark used to calculate this series.
From the September 2021 reference quarter a new benchmarking method was implemented to calculate Travel Services debits. Please see article "Australian System of National Accounts historical revisions" for more details. The ABS has reviewed the benchmark in light of restrictions on international travel easing late last year, resulting in upward revisions to Travel Services debits back to December quarter 2021. The revised estimates more accurately reflect the increasing value of travel debits as the pattern of Australian residents travelling overseas returns towards pre-pandemic levels.
These revisions will also be incorporated in the June quarter 2022 release of Australian National Accounts: National Income, Expenditure and Product.