Balance of Payments and International Investment Position, Australia

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Balance of payments statistics on current, capital and financial transactions and the international investment position statement

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Reference period
September 2022
Released
6/12/2022
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Key statistics

  • The current account balance, seasonally adjusted, fell $17,023m to a deficit of $2,278m. 
  • The capital and financial account deficit rose $27,419m to $7,868m.
  • Australia’s net international investment liability position was $861,619m at 30 September 2022.

Main features

Key figures (a)
 Jun 22 ($m)Sep 22 ($m)
Balance on current account (b)14,745-2,278
Balance on goods and services (b)42,28131,193
Net primary income (b)-26,823-33,191
Capital and financial account-19,5517,868
International investment position (c)844,555861,619
  1. Trend series is not published from June quarter 2019.
  2. Seasonally adjusted estimates at current prices.
  3. Levels at end of period.

The Current Account balance (seasonally adjusted current price) for September quarter 2022 was a deficit of $2.3b, following 13 consecutive quarters in surplus. The current account balance decreased $17.0b from the June quarter 2022 surplus of $14.7b.

The decrease in the Current Account was driven by both a narrowing of the trade surplus and a widened net primary income deficit.

The Balance on goods and services in seasonally adjusted chain volume terms is expected to detract 0.2 percentage points from the September quarter 2022 GDP quarterly movement, assuming no significant revision to June quarter 2022 estimates of GDP.

The Terms of Trade decreased 6.6% to 110.4, down from 118.2 in June quarter 2022. This is the largest fall in the terms of trade since June quarter 2009, coming off the record high in the previous quarter. 

The net primary income deficit widened $6.4 billion to $33.2 billion, driven by strong dividend payments to non-residents on portfolio investment.

Australia's net international investment liability position was $861.6b at September quarter 2022, an increase of $17.1b on the revised June quarter 2022 position of $844.6b.

 

  1. 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

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

A new base year 2020-21 has been introduced into chain volume estimates and implicit price deflators in the September quarter 2022 issue. As a result, the chain volume estimate series and implicit price deflators series will be re-referenced to 2020-21.

Selected international account ratios - Table 23

The updated annual GDP and GNI benchmarks released in the Australian System of National Accounts, 2021-22 on 28 October 2022 will be revised and incorporated into the quarterly national accounts with the September quarter 2022 issue of Australian National Accounts: National Income Expenditure and Product to be released on 7 December 2022. 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 on 7 December 2022.

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.

Current Account

Balance on current account in current prices, seasonally adjusted (a) - September quarter 2022
   Jun 22 ($m)Sep 22 ($m)Jun 22 to Sep 22 ($m)
Balance on current account14,745-2,278-17,023
Balance on goods and services42,28131,193-11,088
Net goods47,62438,870-8,754
Net Services-5,343-7,677-2,334
Net primary income-26,823-33,191-6,368
Net secondary income-713-280433
  1. For sign conventions, see the Concepts section in the Explanatory notes in the Methodology.

Terms of trade

Australia's seasonally adjusted terms of trade on net goods and services for the September quarter 2022 fell 6.6% to 110.4, with a decrease of 2.8% in the implicit price deflator (IPD) for goods and services credits and an increase of 4.1% in the IPD for goods and services debits. 

 

 

  1. Seasonally adjusted, reference year 2020-21=100.

Relationship between IPD, EPI and IPI

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.

Price comparison (QoQ % change)
 Implicit price deflators (a)(b)Implicit price deflators (a)(b)Chain Laspeyres Indexes (a)(b)International Trade Price Indexes (c)
 Seasonally AdjustedOriginalOriginalOriginal
Goods exports-3.0-4.5-2.7-3.6
Services exports1.61.51.3na
Goods imports4.22.93.23.0
Services imports3.02.32.5na

na not available

  1. Reference year 2020-21=100.
  2. Movements in indexes are calculated from unrounded data.
  3. Source: International Trade Price Indexes, Australia (cat. no. 6457.0).
  1. Reference year 2020-21=100.
  2. Source: International Trade Price Indexes, Australia.

Balance on goods and services

In seasonally adjusted chain volume terms, the balance on goods and services was a surplus of $11,661m, a fall of $1,012m on the revised June quarter 2022 surplus of $12,673m. 

The fall in the balance on goods and services surplus of $1.0 billion (seasonally adjusted chain volume measure) is expected to detract 0.2 percentage points from the September 2022 GDP quarterly movement. 

 

  1. Seasonally adjusted, reference year 2020-21.

Exports of goods (credits)

In seasonally adjusted terms at current prices, goods credits fell $2,540m (1.6%) to $152,702m, with volumes up 1.4% and prices down 3.0%. 

 

 

Goods credits, price and volume change - seasonally adjusted - September quarter 2022
  Current prices ($m)Current prices (%)Chain volume measures (a) (%)Implicit price deflators (a)(b)(%)
Exports of goods-2,540-1.61.4-3.0
 Rural goods2,21412.59.82.5
 Non-rural goods-5,042-3.9-0.6-3.3
 Net exports of goods under merchanting-1-1.312.7-12.2
 Non-monetary gold2884.07.9-3.6
  1. Reference year 2020-21=100.
  2. Movements in indexes are calculated from unrounded data.

Rural goods

Rural goods, current price (seasonally adjusted)
  Jun 22 ($m)Sep 22 ($m)Jun 22 to Sep 22 ($m)Jun 22 to Sep 22 (%)
Rural goods17,65519,8692,21412.5
 Meat and meat preparations4,3874,5091222.8
 Cereal grains and cereal preparations4,7195,7871,06822.6
 Wool and sheepskins9751,16719219.7
 Other rural(a)7,5748,40683211.0
  1. For all time periods, estimates for sugar, sugar preparations and honey are included in Other non-rural.

Non-rural goods

Non-rural goods, current price (seasonally adjusted)
  Jun 22 ($m)Sep 22 ($m)Jun 22 to Sep 22 ($m)Jun 22 to Sep 22 (%)
Non-rural goods130,387125,345-5,042-3.9
 Metal ores and minerals(a)42,72441,089-1,635-3.8
 Coal, coke and briquettes(a)41,40136,681-4,720-11.4
 Other mineral fuels(a)26,95128,8401,8897.0
 Metals (excl. non-monetary gold)3,9293,538-391-10.0
 Machinery3,0123,1351234.1
 Transport equipment1,0291,059302.9
 Other manufactures6,2526,3591071.7
 Other non-rural (incl. sugar and beverages)(b)4,1343,770-364-8.8
 Goods procured in ports by carriers(c)955875-80-8.4
  1. Separate seasonally adjusted factors for current price and chain volume measures are applied. 
  2. For all time periods, estimates for sugar, sugar preparations and honey are included in Other non-rural. 
  3. In using these seasonally adjusted series, care should be exercised because of the difficulties associated with reliably estimating the seasonal pattern. 
  1. Seasonally adjusted estimates at current prices.

Imports of goods (debits)

In seasonally adjusted terms at current prices, goods debits rose $6,213m (5.8%) to $113,831m, with volumes up 1.5% and prices up 4.2%. 

 

Goods debits, price and volume change - seasonally adjusted - September quarter 2022
  Current prices ($m)Current prices (%)Chain volume measures (a) (%)Implicit price deflators (a)(b)(%)
Total Goods Imports6,2135.81.54.2
 Consumption goods2,1356.71.35.2
 Capital goods1,2405.11.83.2
 Intermediate and other merchandise goods2,9876.11.74.3
 Non-monetary gold-149-7.5-4.2-3.4
  1. Reference year 2020-21=100.
  2. Movements in indexes are calculated from unrounded data.

Consumption goods

Consumption goods(a), seasonally adjusted
 Jun 22 ($m)Sep 22 ($m)Jun 22 to Sep 22 ($m)Jun 22 to Sep 22 (%)
Consumption goods-32,104-34,2392,1356.7
 Food and beverages, mainly for consumption-4,743-5,0372946.2
 Household electrical items-2,037-2,1391025.0
 Non-industrial transport equipment-6,738-7,7461,00815.0
 Textiles, clothing and footwear-5,718-6,1023846.7
 Toys, books and leisure goods-2,088-2,179914.4
 Consumption goods n.e.s.-10,779-11,0362572.4
  1. For sign conventions, see the Explanatory notes.

Capital goods

Capital goods(a), seasonally adjusted
 Jun 22 ($m)Sep 22 ($m)Jun 22 to Sep 22 ($m)Jun 22 to Sep 22 (%)
Capital goods-24,424-25,6641,2405.1
 Machinery and industrial equipment-8,377-8,5431662.0
 ADP equipment-3,576-3,7862105.9
 Telecommunications equipment-3,963-4,2422797.0
 Civil aircraft and confidentialised items(b)(c)-1,083-1,44836533.7
 Industrial transport equipment n.e.s.-3,825-4,28045511.9
 Capital goods n.e.s.(d)-3,600-3,366-234-6.5
  1. For sign conventions, see the Explanatory notes.
  2. From July 2008, commodities subject to a 'no commodity details' or 'no value details' restriction are included in Civil aircraft and confidentialised items. For earlier periods, commodities subject to a 'no commodity details' or 'no value details' restriction are included in Other merchandise goods.
  3. This component is not seasonally adjusted.
  4. In using these seasonally adjusted series, care should be exercised because of the difficulties associated with reliably estimating the seasonal pattern.

Intermediate and other merchandise goods

Intermediate and other merchandise goods(a), seasonally adjusted
 Jun 22 ($m)Sep 22 ($m)Jun 22 to Sep 22 ($m)Jun 22 to Sep 22 (%)
Intermediate and other merchandise goods-49,104-52,0912,9876.1
 Food and beverages, mainly for industry-689-723344.9
 Primary industrial supplies n.e.s.(b)-764-591-173-22.6
 Fuels and lubricants(c)(d)-17,288-19,6452,35713.6
 Parts for transport equipment-3,878-4,0651874.8
 Parts for ADP equipment-226-197-29-12.8
 Other parts for capital goods-5,463-6,14768412.5
 Organic and inorganic chemicals-1,677-1,92624914.8
 Paper and paperboard-669-690213.1
 Textile yarn and fabrics-464-481173.7
 Iron and steel-1,341-1,299-42-3.1
 Plastics-1,579-1,526-53-3.4
 Processed industrial supplies n.e.s.-14,620-14,287-333-2.3
 Other merchandise goods(e)(f)-223-215-8-3.6
 Goods procured in ports by carriers(c)-223-2987533.6
  1. For sign conventions, see the Explanatory Notes.
  2. In using these seasonally adjusted series, care should be exercised because of the difficulties associated with reliably estimating the seasonal pattern.
  3. Prior to March quarter 2010 this component is not seasonally adjusted.
  4. Separate seasonally adjusted factors for current price and chain volume measures are applied. 
  5. From July 2008, commodities subject to a 'no commodity details' or 'no value details' restriction are included in Civil aircraft and confidentialised items. For earlier periods, commodities subject to a 'no commodity details' or 'no value details' restriction are included in Other merchandise goods.
  6. From July 1981, this component is not seasonally adjusted.

Services

Services exports, price and volume change - seasonally adjusted - September quarter 2022
  Current prices ($m)Current prices (%)Chain volume measures (a) (%)Implicit price deflators (a)(b)(%)
Exports of services2,15712.310.61.6
 Manufacturing services on physical inputs owned by others----
 Maintenance and repair services n.i.e.110.010.01.3
 Transport20816.113.02.7
 Travel1,57620.318.61.4
 Other services3724.42.91.5

- nil or rounded to zero (including null cells)

  1. Reference year 2020-21=100.
  2. Movements in indexes are calculated from unrounded data.
Services imports, price and volume change - seasonally adjusted - September quarter 2022
  Current prices ($m)Current prices (%)Chain volume measures (a) (%)Implicit price deflators (a)(b)(%)
Imports of services4,49119.716.23.0
 Manufacturing services on physical inputs owned by others----
 Maintenance and repair services n.i.e.-35-21.2-23.73.2
 Transport1,13813.54.78.4
 Travel2,97461.558.02.2
 Other services4144.41.33.1

- nil or rounded to zero (including null cells)

  1. Reference year 2020-21=100.
  2. Movements in indexes are calculated from unrounded data.

Income

The primary income deficit rose by $6,368m to $33,191m in the September quarter 2022.

  1. Seasonally adjusted estimates at current prices.

Primary income credits

In seasonally adjusted terms at current prices, income to residents (credits) fell $543m (2.4%) to $22,411m. The main components contributing to this movement were:

  • Portfolio investment assets - investment income on equity and investment fund shares; down $1,017m (11.6%)
  • Portfolio investment assets - interest; up $304m (11.0%)
  • Other investment assets; up $242m (29.6%)

Primary income debits

In seasonally adjusted terms at current prices income to non-residents (debits) rose $5,825m (11.7%) to $55,602m. The main components contributing to this movement were:

  • Portfolio investment liabilities - investment income on equity and investment fund shares; up $4,960m (75.7%)
  • Portfolio investment assets - interest; up $1,366m (16.4%)
  • Direct investment liabilities - income on equity and investment fund shares; down $1,137m (3.7%)
  • Compensation of employees; up $508m (31.2%)
  • Other investment income; up $301m (17.6%)

Secondary income

In seasonally adjusted terms at current prices, the net secondary income deficit fell $433m to $280m in the September quarter 2022. 

Capital and Financial Account

The capital and financial account recorded a surplus of $7.9b during the September 2022 quarter, mainly driven by the financial account surplus of $8.1b.

The financial account rose due to a $7.7b net inflow of equity and a $0.4b net inflow of debt.

Capital and financial account
   Dec 21Mar 22Jun 22Sep 22Jun 22 to
Sep 22
   ($m)($m)($m)($m)($m)
Capital account-42-186-211-239-28
 Acquisitions/disposals of non-produced non-financial assets138256-11-67
  Acquisitions/disposals of non-produced non-financial assets credits142668--68
  Acquisitions/disposals of non-produced non-financial assets debits-4-4-12-111
 Capital transfers-180-188-267-22839
  Capital transfers credits-----
  Capital transfers debits-180-188-267-22839
Financial account-10,261-3,526-19,3408,10727,447
 Direct investment12,593-57,1266,2741306,404
  Direct investment assets-9,031-120,826-12,676-29,832-17,156
  Direct investment liabilities21,62363,7006,40229,96123,559
 Portfolio investment-15,95956,77339,2855,293-33,992
  Portfolio investment assets-60,032-32,96715,118-2,691-17,809
  Portfolio investment liabilities44,07389,74024,1677,984-16,183
 Financial derivatives-5,064-2,734-1,8535,7987,651
  Financial derivatives assets36,09843,34075,656117,08841,432
  Financial derivatives liabilities-41,162-46,074-77,509-111,290-33,781
 Other investment-114160-50,035-1,39348,642
  Other investment assets-6,292-16,797-32,757-3,73429,023
  Other investment liabilities6,17716,957-17,2792,34219,621
 Reserve assets-1,717-599-462-1,721-1,259
 Net errors and omissions3,6092,089-1,2697642,033

- nil or rounded to zero (including null cells)

International Investment Position

Australia's net IIP liability position was $861.6b at 30 September 2022, an increase of $17.1b on the revised 30 June 2022 figure of $844.6b. Australia's net foreign equity asset position decreased $0.3b to $301.1b at 30 September 2022. Australia's net foreign debt liability position increased $16.7b to $1,162.7b.

International investment position, by net foreign equity and net foreign debt
  Position at beginning of periodTransactionsPrice changesExchange rate changesOther adjustmentsPosition at end of period
Net International Investment Position($m)($m)($m)($m)($m)($m)
 Mar‑22774,963-3,526-42,65440,14563,216832,144
 Jun‑22832,144-19,34069,615-37,88924844,555
 Sep‑22844,5558,10733,474-22,947-1,570861,619
Net Foreign Equity      
 Mar‑22-432,129-6,6757,24760,63662,314-308,606
 Jun‑22-308,606-1,39184,484-74,677-1,203-301,393
 Sep‑22-301,3937,73531,718-36,374-2,741-301,055
Net Foreign Debt      
 Mar‑221,207,0923,148-49,901-20,4909021,140,750
 Jun‑221,140,750-17,948-14,86936,7881,2271,145,949
 Sep‑221,145,9493721,75513,4271,1711,162,674

Supplementary Information

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 affected.

Exports on an international merchandise trade basis

Iron ore (in original terms)

  • Adjustments have been applied to iron ore lumps in the June quarter 2022 (-$100m) and September quarter 2022 (-$25m). 
  • Adjustments have been applied to iron ore fines in the June quarter 2022 (-$50m) and September quarter 2022 (-$100m). 
  • When actual final transaction prices become available estimates are replaced with these data.

 

Goods 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 (+$110m) and the September quarter (+$778m) 2022. 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.

 

    Revisions

    The following goods components have been revised since the release of the September 2022 issue of International Trade in Goods and Services, Australia.

    • Transport equipment credits, revised in the September quarter 2022
    • Capital goods n.e.s. debits, revised in the June quarter 2022 and September quarter 2022

    Services components have been revised since the release of the September 2022 issue of International Trade in Goods and Services, Australia, to include the most up to date international trade in services data. 

    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 2018. In original current price terms, these revisions have:

    • decreased the current account surplus for 2018-19 by $340m
    • decreased the current account surplus for 2019-20 by $2,921m 
    • decreased the current account surplus for 2020-21 by $995m 
    • decreased the current account surplus for 2021-22 by $3,536m.

    The International Investment Position (IIP) has been revised back to the September quarter 2021. These revisions have increased Australia's net IIP liability $10,162m to a net liability position of $844,555m at 30 June 2022. The financial account deficit has been revised down $668m to $19,340m at 30 June 2022.

    Seasonally adjusted series have been revised due to the incorporation of revised estimates and the incorporation of estimates for the latest quarter.

    Data in this issue aligns with the data in the September quarter 2022 issue of Australian National Accounts: National Income, Expenditure and Product (cat. no. 5206.0) to be released on 7 December 2022.

    Economic conditions

    CountryMSCI quarterly percentage change (a)(%)AUD exchange rate quarterly percentage change (b)(%)
    Australia-2.2na
    United States of America-5.1-5.62
    United Kingdom-4.132.89
    Europe-10.110.44
    China-22.34-0.09
    Japan-2.540.00
    Singapore-0.08-2.89
    India9.53-2.48
    New Zealand-0.672.48

    OECD quarterly growth rates for select countries can be found through the following link: https://stats.oecd.org/index.aspx?queryid=350.

    1. MSCI data based on local currency except for Europe which is based on $USD. MSCI data from https://www.msci.com/.
    2. Exchange rates data from RBA: https://www.rba.gov.au/statistics/historical-data.html#exchange-rates.

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    Data files

    Previous catalogue number

    This release previously used catalogue number 5302.0.

    Post release changes

    07/12/2022 Note: Updates to 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 6 December 2022, Table 23 in the 'Data downloads' was updated on 7 December 2022 and released in conjunction with the release of the September quarter 2022 issue of Australian National Accounts: National Income, Expenditure and Product.

    Methodology

    Balance of Payments and International Investment Position, Australia methodology, September 2022

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