A plethora of records in our current account performance in the June quarter and over 2021-22.
Australia has recorded its 13th consecutive quarterly current account surplus – the longest period on record, driven by a 40% jump in the value of coal exports in June quarter (which continues) as thermal coal prices hit new all-time highs yesterday of $US466 a tonne on the Newcastle export market.
The quarterly current account surplus rose $15.6 billion to $18.3 billion (seasonally adjusted, current prices) according to the Australian Bureau of Statistics (ABS) thanks to a record performance on the trade account.
The ABS said the balance on goods and services increased $16.3 billion – to reach the highest balance on record – more than $43 billion, driven by strong export prices for coal and LNG in particular, along with wheat.
The terms of trade rose 4.6%, reaching its highest level on record of 130.7 and the ABS estimates the record-breaking performance will have added 1% to June quarter GDP when reported later this morning compared to the 1.7% detraction in the March quarter when surging import prices, especially for oil and petrol) clipped the size of the trade account surplus.
Grace Kim, acting head of international statistics at the ABS, said in Tuesday’s statement: “The increase in the current account surplus was driven by higher commodity prices. Coal prices were elevated over the 2021-22 financial year, with annual exports of Coal exceeding $100 billion for the first time.”
Exports of goods and services increased 14.7%, with rises across mining and agricultural commodities as global supply shortages and rising demand increased demand for Australian energy commodities in particular.
“Travel services also contributed to the rise in exports as education related and personal travel continued to recover following the reopening of Australia’s international borders earlier in the year.
Imports of goods and services rose 4.6% as Australians resumed overseas travel after prolonged border closures. Despite the rise the ABS said travel services remained 59.5% below pre-pandemic levels of December quarter 2019.
Imports of Fuel and lubricants contributed to the rise nin imports, driven by demand for diesel and kerosene (jet fuel) as international and domestic travel continued to increase
The net primary income deficit widened further to a record $24.0 billion in the June quarter 2022 thanks to high dividend payments to non-residents as profits remained strong on the back of higher commodity prices (BHP, Rio Tinto, Fortescue, South31, Whitehaven Coal especially).
Australia’s net international liability position was $834.4 billion in the June quarter, a drop of $19.1 billion.
“This reflected the rise in foreign assets outpacing the rise in foreign liabilities. Australia’s net foreign equity asset position increased $34.3 billion to $323.3 billion at June quarter 2022. Australia’s net foreign debt liability position increased $15.3 billion to $1,157.7 billion
The ABS said that the year to June saw the annual value of exports of coal, coke and briquettes exceed $100 billion for the first time.
