Mining and commodity exports drive Australia to surplus of $11.8b
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The news: Australia’s current account balance increased by $10.5 billion to a surplus of $11.8 billion in the December quarter, driven by mining and commodity exports, new figures by the Australian Bureau of Statistics show.
The numbers: The balance on goods and services rose $8.2 billion to $32.4 billion and the net primary income deficit narrowed $1.9 billion to $20.2 billion.
Exports of goods rose 3.1% reflecting higher export prices, with coal and metal ore exports the largest contributor to the rise. Meanwhile, Australia’s terms of trade rose 2.2% but was down 3.9% through the year.
Exports of services rose 1.3%, led by travel services as more holidaymakers came to Australia.
Imports of goods and services fell 2.6%, while imports of travel services fell for the first time in 2023, down 7.8%, as Australians spent less travelling overseas and travelled to closer destinations.
The primary income deficit of $20.2 billion was the narrowest deficit since September quarter 2021, driven by a drop in primary income debits with reduced profits on foreign direct investment.
The $3.9 billion rise in net trade is expected to contribute 0.6 percentage points to the December quarter 2023 GDP quarterly movement.
The context: ABS head of international statistics said that overall the current account surplus reflected a higher trade surplus, driven by mining commodity exports. Meanwhile, the net primary income deficit narrowed.
The source: ABS media release
