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Balance of Payments and International Investment Position, Australia

Balance of payments on capital and financial transactions plus an international investment statement detailing level of investment and income

Reference period
September 2019
Released
3/12/2019

Key statistics

  • Australia's net IIP liability position decreased $22.0b.
  • Australia's net foreign debt liability position increased $20.4b.
  • Australia's net foreign equity asset position increased $42.4b.
  • The balance on goods and services surplus rose $3,186m.

Main features

Balance of payments

  • The current account surplus, seasonally adjusted, rose $3,186m to $7,855m in the September quarter 2019. The balance on goods and services surplus rose $1,799m to $21,065m. The primary income deficit fell $1,596m to $13,033m.
  • In seasonally adjusted chain volume terms, the surplus on goods and services rose $962m from $8,324m in the June quarter 2019 to $9,285m in the September quarter 2019. This is expected to contribute 0.2 percentage points to growth in the September quarter 2019 volume measure of GDP.
     

International investment position (IIP)

  • Australia's net IIP liability position was $976.0b at 30 September 2019, a decrease of $22.0b on the revised 30 June 2019 position of $998.0b. Australia's net foreign debt liability position increased $20.4b to $1,163.3b and net foreign equity asset position increased $42.4b to $187.4b at 30 September 2019.
     
   Jun Qtr 2019Sep Qtr 2019Jun Qtr 2019 to Sep Qtr 2019
   $m$m% change
BALANCE ON CURRENT ACCOUNT   
 Trend estimates
3 981
8 384
111
 Seasonally adjusted
4 669
7 855
68
BALANCE ON GOODS AND SERVICES   
 Trend estimates
18 633
22 145
19
 Seasonally adjusted
19 266
21 065
9
NET PRIMARY INCOME   
 Trend estimates
-14 515
-13 655
6
 Seasonally adjusted
-14 629
-13 033
11
LEVELS AT END OF PERIOD   
 International Investment Position
997 966
975 989
-2
  Net foreign equity
-144 938
-187 354
-29
  Net foreign debt
1 142 904
1 163 343
2
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  1. Seasonally adjusted estimates at current prices.
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Analysis and comments

Balance of payments

In original current price terms, the September quarter 2019 current account surplus was $5,174m, a fall of $879m on the June quarter 2019 surplus. In original current price terms, the balance on goods and services was a net surplus of $19,589m, primary income was a net deficit of $14,336m and secondary income was a net deficit of $79m.

In original current price terms, the September quarter 2019 capital and financial account was $7,893m, a rise of $4,393m on the June quarter 2019 deficit. In original current price terms, the capital account was a net deficit of $159m and the financial account was a net deficit of $7,734m.

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

     Sep 2018Dec 2018Mar 2019Jun 2019Sep 2019
     $m$m$m$m$m
CURRENT ACCOUNT
-12 330
-6 524
-842
6 053
5 174
 Goods and services
5 264
8 285
16 161
19 066
19 589
  Credits
111 949
118 141
116 849
123 231
128 312
  Debits
-106 685
-109 856
-100 688
-104 165
-108 723
   Goods
8 497
9 512
13 767
21 472
21 902
    Credits
89 043
93 487
90 333
100 190
103 518
    Debits
-80 546
-83 975
-76 566
-78 718
-81 616
   Services
-3 233
-1 227
2 394
-2 406
-2 313
    Credits
22 906
24 654
26 516
23 041
24 794
    Debits
-26 139
-25 881
-24 122
-25 447
-27 107
 Primary income
-17 417
-15 003
-16 355
-12 849
-14 336
  Credits
16 535
17 827
18 062
17 512
16 990
  Debits
-33 952
-32 830
-34 417
-30 361
-31 326
 Secondary income
-177
194
-648
-164
-79
  Credits
2 412
2 441
2 386
2 479
2 413
  Debits
-2 589
-2 247
-3 034
-2 643
-2 492
CAPITAL AND FINANCIAL ACCOUNT
14 206
8 333
3 048
-3 500
-7 893
 Capital account
-175
-162
-200
-233
-159
  Acquisitions/disposals of non-produced non-financial assets
3
33
3
2
6
   Credits
3
63
3
2
7
   Debits
-
-30
-
-
-1
  Capital transfers
-178
-195
-203
-235
-165
   Credits
-
-
-
-
-
   Debits
-178
-195
-203
-235
-165
 Financial account
14 381
8 495
3 248
-3 267
-7 734
  Direct investment
3 542
34 540
4 947
26 302
11 141
   Assets
-12 798
22 134
-7 157
1 558
4 983
   Liabilities
16 340
12 406
12 104
24 744
6 157
  Portfolio investment
-15 064
-7 861
-22 485
-37 625
-3 413
   Assets
-3 369
-24 235
-12 945
-25 357
-22 778
   Liabilities
-11 695
16 373
-9 540
-12 268
19 365
  Financial derivatives
-877
-5 553
-661
-1 273
2 057
   Assets
29 693
10 375
18 162
16 828
26 625
   Liabilities
-30 569
-15 928
-18 823
-18 101
-24 568
  Other investment
25 464
-13 955
23 292
6 338
-21 056
   Assets
27 471
-5 506
17 529
-4 982
-20 177
   Liabilities
-2 007
-8 449
5 763
11 319
-879
  Reserve assets
1 315
1 324
-1 846
2 992
3 538
NET ERRORS AND OMISSIONS
-1 875
-1 810
-2 206
-2 553
2 719
- 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 September quarter 2019 current account surplus was $7,855m, a rise of $3,186m on the June quarter 2019 surplus.

In trend current price terms, the September quarter 2019 current account surplus was $8,384m, a rise of $4,403m on the June quarter 2019 surplus.

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

Balance on current account in current prices - September quarter 2019

    Change in:
   Current pricesCurrent pricesCurrent prices
   $m$m%
Seasonally Adjusted
Balance on current account
7 855
3 186
68
 Balance on goods and services
21 065
1 799
9
  Net goods
21 416
1 354
7
  Net services
-350
447
56
 Net primary income
-13 033
1 596
11
 Net secondary income
-177
-210
(a). .
Trend
Balance on current account
8 384
4 403
111
 Balance on goods and services
22 145
3 512
19
  Net goods
22 506
3 207
17
  Net services
-361
305
46
 Net primary income
-13 655
860
6
 Net secondary income
-106
31
23
.. not applicable
a. see paragraph 17 of Explanatory Notes.
 

Terms of trade (footnote 1)

Australia's seasonally adjusted terms of trade on net goods and services for the September quarter 2019 remained steady at 109.4, with an increase of 1.4% in the implicit price deflator (IPD) for goods and services credits and an increase of 1.0% in the IPD for goods and services debits.

In trend terms, the terms of trade for net goods and services rose 1.2% to 110.3.

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  1. Seasonally adjusted, reference year 2017-18 = 100.

Balance on goods and services

In seasonally adjusted chain volume terms, the balance on goods and services was a surplus of $9,285m, a rise of $962m on the June quarter 2019 surplus of $8,324m.

The net surplus on goods rose $185m on the June quarter 2019 surplus of $7,584m. Goods credits rose $323m and goods debits rose $138m. The net surplus on services rose $776m on the June quarter 2019 surplus of $740m.

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 September quarter 2019 chain volume measure of GDP, assuming no significant revision to the GDP chain volume estimate for the June quarter 2019.

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  1. Seasonally adjusted, reference year 2017-18.

Goods

The trend estimate of net goods at current prices for the September quarter 2019 was a surplus of $22,506m, a rise of $3,207m on the June quarter 2019 surplus of $19,299m.

In seasonally adjusted terms at current prices, net goods was a surplus of $21,416m, a rise of $1,354m on the June quarter 2019 surplus of $20,062m.

Goods, price and volume analysis: seasonally adjusted - September quarter 2019

 Change in:
 Current pricesCurrent pricesChain volume measures(a)Implicit price deflators(a)(b)
 $m%%%
Exports
2 113
2.1
0.4
1.7
Rural goods
-364
-3.1
-2.8
-0.3
Non-rural goods
-73
-0.1
-1.1
1.1
Net exports of goods under merchanting
-9
-16.7
-17.8
1.4
Non-monetary gold
2 560
51.2
30.8
15.6
Imports
760
1.0
0.2
0.8
Consumption goods
231
0.9
-0.5
1.4
Capital goods
-839
-4.3
-5.6
1.4
Intermediate and other merchandise goods
252
0.8
2.1
-1.3
Non-monetary gold
1 116
74.5
51.7
15.0
a. Reference year 2017-18.
b. Movements in indexes are based on data to four decimal places.
 

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Goods credits

The trend estimate of goods credits at current prices rose $2,976m (3%) to $102,128m in the September quarter 2019.

In seasonally adjusted terms at current prices, goods credits rose $2,113m (2%) to $101,807m, with prices up 2%.

Rural goods

Exports of rural goods, in seasonally adjusted terms at current prices, fell $364m (3%) to $11,356m, with volumes down 3%.

The main components contributing to the fall were:

  • other rural, down $241m (4%), with volumes down 3% and prices down 2%
  • wool and sheepskins, down $235m (25%), with volumes down 16% and prices down 10%
  • cereal grains and cereal preparations, down $82m (6%), with volumes down 2% and prices down 4%.
     

Partly offsetting these falls was meat and meat preparations, up $193m (5%), with prices up 5%.

Non-rural goods

Exports of non-rural goods, in seasonally adjusted terms at current prices, fell $73m to $82,843m, with volumes down 1% and prices up 1%.

The main components contributing to the fall were:

  • coal, coke and briquettes, down $1,769m (10%), with volumes down 4% and prices down 6%
  • metals (excl. non-monetary gold), down $509m (14%), with volumes down 16% and prices up 2%.
     

Partly offsetting these falls were:

  • metal ores and minerals, up $1,377m (4%), with volumes up 2% and prices up 2%
  • other mineral fuels, up $1,011m (7%), with volumes up 3% and prices up 4%.
     
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  1. Seasonally adjusted.

Net exports of goods under merchanting

Net exports of goods under merchanting, in seasonally adjusted terms at current prices, fell $9m (17%) to $45m, with volumes down 18% and prices up 1%.

Non-monetary gold

Exports of non-monetary gold, in original and seasonally adjusted terms at current prices, rose $2,560m (51%) to $7,563m, with volumes up 31% and prices up 16%.

Goods debits

The trend estimate of goods debits at current prices fell $231m to $79,622m in the September quarter 2019.

In seasonally adjusted terms at current prices, goods debits rose $760m (1%) to $80,391m, with prices up 1%.

Consumption goods

Imports of consumption goods, in seasonally adjusted terms at current prices, rose $231m (1%) to $26,233m, with volumes down 1% and prices up 1%.

The main components contributing to the rise were:

  • non-industrial transport equipment, up $300m (5%), with volumes up 6%
  • textiles, clothing and footwear, up $93m (2%), with prices up 2%.
     

Partly offsetting these rises was consumption goods n.e.s., down $182m (2%), with volumes down 5% and prices up 3%.

Capital goods

Imports of capital goods, in seasonally adjusted terms at current prices, fell $839m (4%) to $18,845m, with volumes down 6% and prices up 1%.

The main components contributing to the fall were:

  • civil aircraft and confidentialised items, down $543m (38%), with volumes down 39% and prices up 3%
  • industrial transport equipment n.e.s., down $418m (13%), with volumes down 14% and prices up 2%
  • machinery and industrial equipment, down $260m (4%), with volumes down 5% and prices up 1%
  • ADP equipment, down $158m (6%), with volumes down 6%.
     

Partly offsetting these falls were:

  • telecommunications equipment, up $407m (12%), with volumes up 11% and prices up 2%
  • capital goods n.e.s., up $134m (5%), with volumes up 1% and prices up 4%.
     

Intermediate and other merchandise goods

Imports of intermediate and other merchandise goods, in seasonally adjusted terms at current prices, rose $252m (1%) to $32,700m, with volumes up 2% and prices down 1%.

The main components contributing to the rise were:

  • processed industrial supplies n.e.s., up $191m (2%), with volumes up 2% and prices up 1%
  • primary industrial supplies n.e.s., up $160m (43%), with volumes up 53% and prices down 6%.
     

Partly offsetting these rises was other parts for capital goods, down $99m (2%), with volumes down 4% and prices up 2%.

Non-monetary gold

Imports of non-monetary gold, in original and seasonally adjusted terms at current prices, rose $1,116m (74%) to $2,614m, with volumes up 52% and prices up 15%.

Services

The trend estimate of net services at current prices was a deficit of $361m, a fall of $305m on the June quarter 2019 deficit of $666m.

In seasonally adjusted terms at current prices, net services was a deficit of $350m, a fall of $447m on the June quarter 2019 deficit of $797m.

Services, price and volume analysis: seasonally adjusted - September quarter 2019

 Change in:
 Current pricesCurrent pricesChain volume measures(a)Implicit price deflators(a)(b)
 $m%%%
Exports
494
2.0
1.6
0.4
Manufacturing services on physical inputs owned by others
-
-
-
-
Maintenance and repair services n.i.e.
1
9.1
8.7
0.4
Transport
19
1.0
-0.5
1.4
Travel
457
2.8
2.6
0.2
Other services
17
0.2
-0.1
0.3
Imports
47
0.2
-1.6
1.8
Manufacturing services on physical inputs owned by others
-
-
-
-
Maintenance and repair services n.i.e.
18
6.3
4.5
1.7
Transport
-104
-2.2
-5.1
3.0
Travel
85
0.7
-0.8
1.5
Other services
48
0.6
-1.0
1.6
- nil or rounded to zero (including null cells)
a. Reference year 2017-18.
b. Movements in indexes are based on data to four decimal places.
 

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Services credits

Services credits, in seasonally adjusted terms at current prices, rose $494m (2%) to $25,566m, with volumes up 2%.

The main component contributing to the rise was travel, up $457m (3%), with volumes up 3%.

In seasonally adjusted terms, tourism related services credits rose $474m (3%) to $17,445m.

Services debits

Services debits, in seasonally adjusted terms at current prices, rose $47m to $25,916m, with volumes down 2% and prices up 2%.

The main components contributing to the rise were:

  • travel, up $85m (1%), with volumes down 1% and prices up 1%
  • other services, up $48m (1%), with volumes down 1% and prices up 2%.
     

Partly offsetting these rises was transport, down $104m (2%), with volumes down 5% and prices up 3%.

In seasonally adjusted terms, tourism related services debits rose $80m (1%) to $15,007m.

Primary income

The trend estimate of the net primary income deficit at current prices fell $860m (6%) to $13,655m in the September quarter 2019.

In seasonally adjusted terms at current prices, the net primary income deficit fell $1,596m (11%) to $13,033m in the September quarter 2019.

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Primary income credits

Primary income credits, in seasonally adjusted terms at current prices, rose $5m to $17,395m. Compensation of employees rose $51m (9%) partially offset by investment income, which fell $47m. The main component of investment income contributing to the fall was portfolio investment assets, interest, down $612m (29%) this was partially offset by direct investment assets, income on equity and investment fund shares, up $477m (9%).

Primary income debits

Primary income debits, in seasonally adjusted terms at current prices, fell $1,592m (5%) to $30,427m. The main components of investment income contributing to the fall were portfolio investment liabilities, interest, down $1,056m (18%), portfolio investment liabilities, income on equity and investment fund shares, down $250m (4%) and direct investment liabilities, income on equity and investment fund shares, down $179m (1%).

Secondary income

The trend estimate of the net secondary income deficit at current prices fell $31m to $106m in the September quarter 2019.

In seasonally adjusted terms at current prices, the net secondary income deficit was a turnaround of $210m on the June quarter 2019 surplus of $33m.

Capital account

In original terms, the capital account deficit was $159m, a decrease of $74m on the June quarter 2019 deficit of $233m. Capital account credits increased $5m and capital account debits decreased $69m (29%) in the September quarter 2019.

Financial account

The balance on the financial account, in original terms, recorded a net outflow of $7.7b, which was driven by a net outflow of debt of $5.5b and a net outflow of equity of $2.3b.

The financial account deficit increased $4.5b from $3.3b in the June quarter 2019, to $7.7b in the September quarter 2019.

Direct investment

Direct investment recorded a net inflow of $11.1b in the September quarter 2019, a decrease of $15.2b on the net inflow of $26.3b in the June quarter 2019, where:

  • direct investment liabilities recorded an inflow of $6.2b, a decrease of $18.6b on the inflow of $24.7b in the June quarter 2019
  • direct investment assets recorded an inflow of $5.0b, an increase of $3.4b on the inflow of $1.6b in the June quarter 2019.
     

Portfolio investment

Portfolio investment recorded a net outflow of $3.4b in the September quarter 2019, a decrease of $34.2b on the net outflow of $37.6b in the June quarter 2019, where:

  • equity and investment fund shares recorded a net outflow of $12.6b in the September quarter 2019, a decrease of $5.7b on the net outflow of $18.3b in the June quarter 2019
  • debt securities recorded a net inflow of $9.2b in the September quarter 2019, a turnaround of $28.5b on the net outflow of $19.3b in the June quarter 2019.
     

Financial derivatives

Financial derivatives recorded a net inflow of $2.1b in the September quarter 2019, a turnaround of $3.3b on the net outflow of $1.3b in the June quarter 2019.

Other investment

Other investment recorded a net outflow of $21.1b in the September quarter 2019, a turnaround of $27.4b on the net inflow of $6.3b in the June quarter 2019. This was driven by net outflows of $13.0b in loans and net outflows of $3.4b in currency and deposits.

Reserve assets

Reserve assets recorded an inflow of $3.5b in the September quarter 2019, an increase of $0.5b on the inflow of $3.0b in the June quarter 2019.

International investment position (IIP)

Australia's net IIP liability position was $976.0b at 30 September 2019, a decrease of $22.0b on the revised 30 June 2019 position of $998.0b. Australia's net foreign debt liability position increased $20.4b to $1,163.3b and net foreign equity asset position increased $42.4b to $187.4b at 30 September 2019.

International investment position, by net foreign equity and net foreign debt

   Changes in position reflecting 
  Position at beginning of periodTransactionsPrice changesExchange rate changesOther adjustmentsPosition at end of period
  $m$m$m$m$m$m
Net International Investment Position      
 Mar 2019
1 018 338
3 248
-26 884
3 186
-5 439
992 449
 Jun 2019
992 449
-3 267
4 610
6 348
-2 175
997 966
 Sep 2019
997 966
-7 734
1 860
-4 838
-11 264
975 989
Net Foreign Equity      
 Mar 2019
-98 861
11 352
-39 748
3 012
-6 936
-131 179
 Jun 2019
-131 179
5 771
-4 851
-10 357
-4 322
-144 938
 Sep 2019
-144 938
-2 262
-6 131
-19 502
-14 522
-187 354
Net Foreign Debt      
 Mar 2019
1 117 199
-8 104
12 864
173
1 496
1 123 629
 Jun 2019
1 123 629
-9 038
9 460
16 706
2 147
1 142 904
 Sep 2019
1 142 904
-5 472
7 991
14 664
3 257
1 163 343

Supplementary information

Conditions

The conditions in the global economy showed slower than expected growth in most of Australia’s major trading partner countries in the September quarter 2019. 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 (1.5%), Indonesia (1.2%), the USA (0.5%), South Korea (0.4%), Spain (0.4%), Belgium (0.4%), Netherlands (0.4%), Euro 28 (0.3%), France (0.3%), the UK (0.3%), Germany (0.1%) and Japan (0.1%).

  • Foreign asset transactions recorded an outflow of -$7.8b in the September quarter 2019 compared to an outflow of -$9.0b in the June quarter 2019
  • Foreign liability transactions were $0.1b in the September quarter 2019 compared to $5.7b in the June quarter 2019.
     

The Australian share market, as measured by the MSCI global index (footnote 3), increased 1.2% in the September quarter 2019, compared to an increase of 7.7% in the June quarter 2019. Increases were recorded in New Zealand (3.0%), Japan (2.6%), France (2.5%), Switzerland (2.5%), Canada (1.2%), the USA (1.1%) and Germany (0.2%). Decreases were recorded in Hong Kong (12.4%), Singapore (5.2%), China (5.0%) and the UK (0.6%). A market price change of -$8.2b was recorded for foreign equity assets and $2.1b for foreign equity liabilities in the September quarter 2019.

According to Thomson Reuters (footnote 4), the composite corporate benchmark yields decreased in the USA from 3.24% to 3.01%, the UK from 2.15% to 1.83%, Germany from 0.64% to 0.50%, and Japan from 0.31% to 0.30% over the September quarter 2019. The long-term 10 year government bond yields decreased in the USA from 2.00% to 1.68%, the UK from 0.83% to 0.49%, Japan from -0.16% to -0.22% and Germany from -0.32% to -0.57% over the September quarter 2019. A market price change of -$0.4b was recorded for portfolio investment debt securities assets and $9.6b in portfolio investment debt securities liabilities in the September quarter 2019.

The Australian dollar depreciated against almost all major and minor trading currencies in the September quarter 2019. The Australian dollar depreciated 3.76% against the US Dollar, 3.71% against the Japanese yen, 3.47% against the Indonesian rupiah, 3.37% against the Hong Kong dollar, 2.75% against the Canadian dollar, 2.24% against the Swiss franc, 1.76% against the Singapore dollar, 1.36% against the Indian rupee, 0.85% against the UK pound sterling, 0.22% against the South Korean won and 0.20% against the Chinese renminbi. The Australian dollar appreciated 3.34% against the South African rand and 3.05% against the New Zealand dollar, while it was unchanged against the European euro. The Trade Weighted Index (TWI)(footnote 5) fell 1.50% to 59.200 in the September quarter 2019. These movements were reflected in exchange rate changes for foreign assets $34.7b and foreign liabilities of $29.8b in the September quarter 2019.

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Relationship between IPD, EPI and IPI (footnote 6)

In original terms, the IPD for total goods credits rose 1.6% and the chain Laspeyres price index for goods exports rose 1.6%. The Export Price Index (EPI)(footnote 7) rose 1.3% during the September quarter 2019.

In original terms, the IPD for total goods debits rose 0.6% and the chain Laspeyres price index for goods imports rose 0.8%. The Import Price Index (IPI)(footnote 7) rose 0.4% during the September quarter 2019.

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 - September quarter 2019

  Change in:
  Seasonally adjustedOriginal
  Implicit price deflators(a)Implicit price deflators(a)International trade price indexes(b)Chain Laspeyres price indexes(a)
  
%
%
%
%
Exports    
 Goods
1.7
1.6
1.3
1.6
 Services
0.4
0.4
na
0.4
Imports    
 Goods
0.8
0.6
0.4
0.8
 Services
1.8
1.8
na
1.8
na not available
a. Reference year 2017-18 = 100.
b. Source: International Trade Price Indexes, Australia (cat. no. 6457.0).
 
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  1. Reference year 2017-18 = 100.
  2. Source: International Trade Price Indexes, Australia (cat. no. 6457.0).

Commodity price indexes

The RBA Commodity Price Index (average monthly index) for rural commodities fell 2.6% between the June quarter 2019 and the September quarter 2019 while the EPI for rural goods fell 0.7%.

The RBA Commodity Price Index for non-rural commodities fell 1.1% between the June quarter 2019 and the September quarter 2019 while the EPI for non-rural goods (excluding non-monetary gold) rose 0.6%.

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.

Footnotes

  1. In this commentary movements in indexes are based on data to four decimal places. 
  2. OECD Statistics Quarterly National Account, Organisation for Economic Cooperation and Development – Economic Department, viewed 20 November 2019. 
  3. MSCI Global Market Indexes 2019, Morgan Stanley Capital International, viewed 10 October 2019. 
  4. Thomson Reuters, viewed 08 October 2019. 
  5. Exchange Rates – Daily 2014 to Current, Reserve Bank of Australia - Statistical Tables, viewed 08 October 2019. 
  6. In this commentary movements in indexes are based on data to four decimal places. 
  7. Source: International Trade Price Indexes, Australia (cat. no. 6457.0)

Revisions

The following goods component has been revised since the release of the September 2019 issue of International Trade in Goods and Services, Australia (cat. no. 5368.0).

  • capital goods n.e.s. component of goods debits, revised in the September quarter 2019.
     

Summary of revisions since the last issue of this publication

Table 28 summarises revisions, in original current price terms, since the last issue of this publication.

Incorporation of the latest survey and administrative data has resulted in revisions to the balance of payments series back to the September quarter 2015. In original current price terms, these revisions have:

  • increased the 2015-16 current account deficit by $15m
  • decreased the 2016-17 current account deficit by $20m
  • decreased the 2017-18 current account deficit by $149m
  • decreased the current account deficit for the September quarter 2018 by $432m
  • decreased the current account deficit for the December quarter 2018 by $157m
  • increased the current account deficit for the March quarter 2019 by $790m
  • decreased the current account surplus for the June quarter 2019 by $1,441m.
     

The International Investment Position (IIP) has been revised back to the September quarter 2018. These revisions have decreased Australia's net IIP liability $3,594m to a net liability position of $997,966m at 30 June 2019. The financial account deficit has been revised down $663m to $3,267m at the June quarter 2019.

Seasonally adjusted and trend series have been revised due to the incorporation of revised estimates and the incorporation of estimates for the latest quarter and the annual re-analysis. For details on the seasonal re-analysis see the Annual seasonal re-analysis section.

Chain volume estimates, implicit price deflators and terms of trade indexes have been revised as a result of the incorporation of revised estimates and seasonal factors and the introduction of a new reference year. For details see the New base year and re-referencing of chain volume estimates, implicit price deflators and terms of trade indexes section for details.

Data in this issue aligns with the data in the September quarter 2019 issue of Australian National Accounts: National Income, Expenditure and Product (cat. no. 5206.0) to be released on 4 December 2019.

Changes in this issue

Annual seasonal re-analysis

The seasonally adjusted and trend estimates of goods, services, primary income and secondary income have been revised as a result of the annual seasonal re-analysis. This re-analysis reviews the seasonal and trading day factors in more detail than is possible in the quarterly processing cycle and assesses the appropriateness of any prior corrections.

New base year and re-referencing of chain volume estimates and implicit price deflators

A new base year 2017-18 has been introduced into chain volume estimates, implicit price deflators, chain Laspeyres price and terms of trade indexes. These series have been re-referenced to 2017-18. Additivity has been preserved in the quarters subsequent to the new reference year as well as the annual sum of the quarters in the reference year. Re-referencing affects the levels, but not the movements of chain volume estimates, implicit price deflators and terms of trade indexes.

Selected international accounts ratios - table 23

The updated annual GDP and GNI benchmarks released in the Australian System of National Accounts, 2018-19 (cat. no. 5204.0) on 25 October 2019 will be revised and incorporated into the quarterly national accounts with the September quarter 2019 issue of Australian National Accounts: National Income Expenditure and Product (cat. no. 5206.0) to be released on 4 December 2019. The revised benchmarks will change the level of the quarterly and annual GDP and GNI used in the ratios for table 23 of this publication. As the ratios using the currently available GDP and GNI would be inconsistent with the revised data, they have been suppressed in this issue. Table 23 in the time series spreadsheets released in conjunction with this publication will be updated with the release of the quarterly Australian National Accounts: National Income, Expenditure and Product (cat. no. 5206.0) on 4 December 2019.

Change to Australia's economic territory

A new Maritime Boundary Treaty between Australia and Timor-Leste came in to force on 30 August 2019. The new treaty provides exclusive jurisdiction of the former Joint Petroleum Development Area excluding Greater Sunrise in the Timor Sea to Democratic Republic of Timor-Leste. From this publication onwards, data contained within Balance of Payments and International Investment Position, Australia (cat. no. 5302.0) will reflect the new maritime boundary.

Value adjustments

Goods credits data presented in this publication are based on information provided by exporters to the Department of Home Affairs (Home Affairs). At the time of initial reporting to Home Affairs, the final prices at which transactions take place are not known for some commodities. Final quantity and/or unit price information is updated progressively in international merchandise trade data as exporters revise the information provided to Home Affairs.

For commodities such as iron ore and coal, newly negotiated contract prices are not fully reflected in data first reported to Home Affairs. When additional information on quantity and/or unit price for these commodities is available, the ABS may adjust the data to reflect actual transaction values.

Iron ore adjustments are applied on an international merchandise trade basis at the Australian Harmonized Export Commodity Classification (AHECC) level. Coal, coke and briquettes are adjusted on a balance of payments basis in original current price terms. When actual final transaction prices become available estimates are replaced with these data.

In most instances, transfer of ownership occurs when goods cross the customs frontier. In certain circumstances the ownership of large value capital expenditure items can occur prior to the items crossing the customs frontier. The ABS may adjust the relevant balance of payments series to record the timing when transfer of ownership was effected.

Exports on an international merchandise trade basis

Iron ore (in original terms)

  • adjustments have been applied to iron ore lump in the June quarter (+$45m) and the September quarter (+$235m) 2019. Adjustments have been applied to iron ore fines in the June quarter (+$95m) and the September quarter (+$520m) 2019. When actual final transaction prices become available estimates are replaced with these data.
     

Goods credits on a balance of payments basis

Coal (in original terms)

  • adjustments have been applied to coal, coke and briquettes in the balance of payments series for the June quarter (-$5m) and the September quarter (-$20m) 2019. All previous adjustments have been removed.
     

Capital expenditure (in original terms)

  • the balance of payments goods debits component capital goods n.e.s. includes an estimate of expenditure on capital goods that have changed ownership but have not yet crossed the customs frontier.

Related releases

International trade: supplementary information, financial year

The data cubes International Trade: Supplementary Information, Financial Year, 2018-19 (cat. no. 5368.0.55.003) was released on the ABS website on 21 November 2019.

Data downloads

All time series spreadsheets

04/12/2019 Note: SELECTED INTERNATIONAL ACCOUNTS RATIOS TABLE 23

Ratios of current account and international investment measures to quarterly GDP and GNI are normally presented in Table 23.

As advised in the Changes in this issue section of this publication published on 3 December 2019, table 23 in the Time Series data will be updated on 4 December 2019 and released in conjunction with the release of the September quarter 2019 issue of Australian National Accounts: National Income and Expenditure (cat. no. 5206.0)

Table 1. Balance of payments, summary: original - quarter

Table 2. International investment position: by net foreign equity and net foreign debt - quarter

Table 3. Foreign assets and liabilities: by equity and debt - quarter

Table 4. Current account transactions: seasonally adjusted and trend estimates - quarter

Table 5. Goods and services: chain volume measures and indexes - quarter

Table 6. Goods credits

Table 7. Goods debits

Table 8. Services credits

Table 9. Services debits

Table 10. Income credits - quarter

Table 11. Income debits - quarter

Table 12. Capital account: original - quarter

Table 13. Financial account - quarter

Table 14. International investment: foreign assets - quarter

Table 15. International investment: foreign liabilities - quarter

Table 16. Foreign debt levels - quarter

Table 17. Gross external debt liabilities: levels - quarter

Table 18. Currency and residual maturity of foreign debt - quarter

Table 19. Exchange rates - quarter

Table 20. Foreign assets and liabilities by industry - quarter

Table 21. Goods and services credits by state on a balance of payments basis - quarter

Table 22. Goods and services debits by state on a balance of payments basis - quarter

Table 23. Selected international accounts ratios: seasonally adjusted - quarter

04/12/2019 Note: SELECTED INTERNATIONAL ACCOUNTS RATIOS TABLE 23

Ratios of current account and international investment measures to quarterly GDP and GNI are normally presented in Table 23.

As advised in the Changes in this issue section of this publication published on 3 December 2019, table 23 in the Time Series data will be updated on 4 December 2019 and released in conjunction with the release of the September quarter 2019 issue of Australian National Accounts: National Income and Expenditure (cat. no. 5206.0)

Table 24. Quarterly combined current price seasonal adjustment factors

Table 25. Exports by SITC division on a balance of payments basis - quarter

Table 26. Imports by broad economic category on a balance of payments basis - quarter

Table 27. International investment: directional principle - quarter

Table 28. Summary of revisions - quarter

Table 29. International investment position: historical summary - quarter

Table 30. Balance of payments, summary: original - financial year

Table 31. Selected services, chain volume measures and implicit price deflators: original - quarter

History of changes

Show all

04/12/2019 - Note: SELECTED INTERNATIONAL ACCOUNTS RATIOS TABLE 23

Ratios of current account and international investment measures to quarterly GDP and GNI are normally presented in Table 23.

As advised in the Changes in this issue section of this publication published on 3 December 2019, table 23 in the Time Series data will be updated on 4 December 2019 and released in conjunction with the release of the September quarter 2019 issue of Australian National Accounts: National Income and Expenditure (cat. no. 5206.0)