Australia Current Account Surplus Twelfth Straight in Q1 2022 but Lowest Since Q4 2019

Australia posted a current account surplus that missed expectations of $13.2 billion significantly for the March quarter after it decreased by $5.7 billion to $7.5 billion (seasonally adjusted) in the March quarter. Import volumes far outstripped exports which took a slice out of economic growth. Higher dividend payments to non-residents as profits continued to rise on the back of higher commodity prices affected the deficit,

“The current surplus narrowed for the third consecutive quarter and was the lowest since December quarter 2019. The fall in the current account surplus was driven by a $4.9 billion widening of the net primary income deficit and a fall of $0.9 billion in the balance on goods and services surplus,” the ABS said.

  • AUD 4.9 billion widening of the net primary income deficit
  • AUD 0.9 billion fall in the balance on goods and services surplus.
  • The goods and services account surplus decreased to AUD 28.2 billion in Q1 from AUD 29.1 billion in Q4.
  • Net primary income deficit rose to AUD 20 billion from AUD 15.2 billion.
  • Net secondary account gap was unchanged at AUD 0.7 billion.
Australian Current Account

“The rise in the net primary income deficit reflected higher dividend payments to non-residents as profits continued to rise on the back of higher commodity prices,” Head of International Statistics at the ABS, Andrew Tomadini said.

GDP Affect

Net exports will subtract 1.7 percentage points from gross domestic product (GDP) in the first quarter, above forecasts for a 1.4 percentage point drag. The GDP figures are due on Wednesday and were expected to show growth of 0.7% for the quarter and 3.0% for the year.

Source: ABS

Via a Sunburnt Country…

From The TradersCommunity Australian News Desk