Australia's current account balance rose by $2.2 billion to a deficit of $14.1 billion in the September quarter 2024 (seasonally adjusted, current prices), according to figures released today by the Australian Bureau of Statistics (ABS).
The surplus on trade in goods and services fell $3.3 billion to $3.3 billion. This was offset by the net primary income deficit which narrowed $5.5 billion to $17.3 billion.
Tom Lay, ABS head of International Statistics, said: "The trade surplus fell to its lowest level since June 2018 reflecting continued falls in Australia's terms of trade."
"The net primary income deficit narrowed to its smallest level since September quarter 2021 due to a fall in dividends paid by Australian firms to overseas investors."
Exports of goods fell 2.3 per cent, led by Other mineral fuels and Metal ores and minerals. Production disruptions impacted LNG exports while Iron ore exports fell in line with global price falls.
Exports of services also fell, down 3.0 per cent, led by education-related Travel services. This was driven by a fall in the number of students arriving to start semester two. Other personal travel also contributed to the fall in travel services.
Australia's terms of trade fell 2.5 per cent from June quarter 2024 and is 3.9 per cent lower compared to September quarter 2023.
"The export price falls were largely responsible for the drop in the terms of trade, as iron ore and coal prices fell for the third quarter in a row due to lower global demand," Mr Lay said.
Imports of goods fell 2.2 per cent, driven by reduced Fuels and lubricants imports with oil producing countries extending oil production cuts to help curb global oversupply.
Non-industrial transport equipment also fell with a drop in the number of electric vehicles imported.
Imports of services offset the fall in goods imports, rising 4.6 per cent from the June quarter, led by a 11.7 per cent rise in Travel services. The number of Australian tourists travelling to Europe rose, coinciding with the European summer and France hosting the summer Olympics.
| Current account balance ($b) | Net goods & services ($b) | Net primary income ($b) | |
|---|---|---|---|
| Sep-19 | 4.7 | 19.2 | -14.3 |
| Dec-19 | -0.4 | 12.6 | -12.8 |
| Mar-20 | 3.4 | 14.3 | -10.7 |
| Jun-20 | 12.4 | 20.4 | -7.4 |
| Sep-20 | 7.4 | 11.4 | -3.4 |
| Dec-20 | 11 | 16 | -4.2 |
| Mar-21 | 16.2 | 22.9 | -6.2 |
| Jun-21 | 16.5 | 28.5 | -10.6 |
| Sep-21 | 19.3 | 34.5 | -14.4 |
| Dec-21 | 0.9 | 22.7 | -20.9 |
| Mar-22 | 0.5 | 24.2 | -22.7 |
| Jun-22 | 8.7 | 40.5 | -31 |
| Sep-22 | -3.9 | 28.3 | -31.9 |
| Dec-22 | 4 | 31.9 | -27.5 |
| Mar-23 | 2.8 | 30.4 | -27.2 |
| Jun-23 | -2.2 | 21.4 | -23.2 |
| Sep-23 | -7.5 | 15.6 | -22.4 |
| Dec-23 | -1.2 | 21.4 | -22.3 |
| Mar-24 | -10.4 | 11.7 | -22 |
| Jun-24 | -16.4 | 6.5 | -22.8 |
| Sep-24 | -14.1 | 3.3 | -17.3 |
(a) seasonally adjusted estimates at current prices
The net primary income deficit (-$17.3 billion) fell by $5.5 billion, due to a drop in primary income debits (outflows) of $3.9 billion, the first fall in this series since December 2023.
The fall in debits was due to a reduction in dividends paid to overseas portfolio investors, as well as a drop in interest paid on Australia's debt liabilities.
Primary income credits (inflows) rose $1.6 billion to its highest level on record, reflecting strong returns on Australian foreign equity assets.
| Net primary income ($b) | Primary income credits ($b) | Primary income debits ($b) | |
|---|---|---|---|
| Sep-19 | -14.3 | 16.634 | -30.934 |
| Dec-19 | -12.793 | 17.069 | -29.862 |
| Mar-20 | -10.691 | 16.863 | -27.553 |
| Jun-20 | -7.362 | 14.269 | -21.632 |
| Sep-20 | -3.372 | 15.391 | -18.762 |
| Dec-20 | -4.202 | 14.354 | -18.556 |
| Mar-21 | -6.196 | 15.685 | -21.881 |
| Jun-21 | -10.631 | 15.882 | -26.513 |
| Sep-21 | -14.42 | 17.697 | -32.117 |
| Dec-21 | -20.91 | 18.667 | -39.577 |
| Mar-22 | -22.747 | 20.147 | -42.894 |
| Jun-22 | -31.039 | 23.296 | -54.335 |
| Sep-22 | -31.864 | 22.392 | -54.256 |
| Dec-22 | -27.478 | 24.924 | -52.403 |
| Mar-23 | -27.152 | 22.3 | -49.451 |
| Jun-23 | -23.248 | 23.758 | -47.006 |
| Sep-23 | -22.414 | 24.764 | -47.178 |
| Dec-23 | -22.305 | 24.539 | -46.844 |
| Mar-24 | -21.986 | 26.054 | -48.04 |
| Jun-24 | -22.824 | 26.453 | -49.277 |
| Sep-24 | -17.317 | 28.025 | -45.342 |
(a) seasonally adjusted estimates at current prices
The financial account had a surplus of $20.2 billion, driven by net inflows of debt (+$47.4 billion) and partly offset by net outflows of equity (-$27.2 billion).
Net international investment liability position was up $20.6 billion to $716.5 billion.
"Australia's net international investment liability position, which is the net amount that Australia owes to the rest of the world, rose for the quarter." Mr Lay said.
"This was primarily due to Australia's net foreign debt liabilities rising by $56.6 billion to $1.3 trillion, reflecting a growth in overseas investors acquisition of debt securities issued by Australian banks."
Australia's net foreign equities grew by $35.9 billion to $586.3 billion, as rising values in international share markets benefited Australian equity investment.
The $0.8 billion rise in net trade (seasonally adjusted, chain volume measure) is expected to add 0.1 percentage points to the September quarter 2024 Gross Domestic Product (GDP) movement.
This publication includes a newly introduced methodology to measure selected digital services imports and exports.
