International
Australia's Current Account Deficit Widens in March Quarter
Australia's seasonally adjusted current account deficit widened to AU$27.12 billion in the March quarter from AU$23.04 billion in the previous quarter, data from the Australian Bureau of Statistics showed Tuesday.The current account balance declined for the fourth consecutive quarter, with the deficit projected to reach its highest level as a percentage of nominal gross domestic product (GDP) since June 2016, said Jonathon Khoo, the Bureau's head of international statistics.The balance on trade in goods and services shifted to a deficit of AU$2.44 billion in the March quarter, from a surplus of AU$1.07 billion in the previous quarter."Trade in goods and services fell into a deficit for the first time since December quarter 2017, with exports of mining commodities falling and imports of data center equipment and fuels rising," Khoo said.Exports of goods and services fell 1.2% in the March quarter, driven by a 1.2% decline in goods exports, while imports of goods and services rose 0.8%, led by a 1.5% increase in goods imports, per the report.Services exports declined by 1.3%, mainly due to a drop in education-related travel services as fewer international students enrolled.Non-monetary gold exports and imports increased by 23.7% and 12.9%, respectively, as gold prices continued to hit record highs, marking the tenth consecutive quarterly rise in both trade flows."Foreign-owned mining companies in Australia saw higher profits this quarter due to price rises in gold and profits paid back to foreign owners and shareholders," Khoo added.The net primary income deficit widened to AU$23.66 billion in the March quarter from AU$23.27 billion in the previous quarter, the report said.The financial account recorded a surplus of AU$18.9 billion, supported by net debt and equity inflows.The balance on goods and services is expected to detract 0.8 percentage points from the March quarter GDP growth, the report added.
ASX 200
