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Balance of Payments and International Investment Position, Australia

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Balance of payments statistics on current, capital and financial transactions and the international investment position statement

Reference period
September 2022
Released
6/12/2022

Key statistics

  • The current account balance, seasonally adjusted, fell $17,023m to a deficit of $2,278m. 
  • The capital and financial account deficit rose $27,419m to $7,868m.
  • Australia’s net international investment liability position was $861,619m at 30 September 2022.

Main features

Key figures (a)
 Jun 22 ($m)Sep 22 ($m)
Balance on current account (b)14,745-2,278
Balance on goods and services (b)42,28131,193
Net primary income (b)-26,823-33,191
Capital and financial account-19,5517,868
International investment position (c)844,555861,619
  1. Trend series is not published from June quarter 2019.
  2. Seasonally adjusted estimates at current prices.
  3. Levels at end of period.

The Current Account balance (seasonally adjusted current price) for September quarter 2022 was a deficit of $2.3b, following 13 consecutive quarters in surplus. The current account balance decreased $17.0b from the June quarter 2022 surplus of $14.7b.

The decrease in the Current Account was driven by both a narrowing of the trade surplus and a widened net primary income deficit.

The Balance on goods and services in seasonally adjusted chain volume terms is expected to detract 0.2 percentage points from the September quarter 2022 GDP quarterly movement, assuming no significant revision to June quarter 2022 estimates of GDP.

The Terms of Trade decreased 6.6% to 110.4, down from 118.2 in June quarter 2022. This is the largest fall in the terms of trade since June quarter 2009, coming off the record high in the previous quarter. 

The net primary income deficit widened $6.4 billion to $33.2 billion, driven by strong dividend payments to non-residents on portfolio investment.

Australia's net international investment liability position was $861.6b at September quarter 2022, an increase of $17.1b on the revised June quarter 2022 position of $844.6b.

 

  1. Seasonally adjusted estimates at current prices.

COVID-19 in this publication

Changes in this issue

Current Account

Balance on current account in current prices, seasonally adjusted (a) - September quarter 2022
   Jun 22 ($m)Sep 22 ($m)Jun 22 to Sep 22 ($m)
Balance on current account14,745-2,278-17,023
Balance on goods and services42,28131,193-11,088
Net goods47,62438,870-8,754
Net Services-5,343-7,677-2,334
Net primary income-26,823-33,191-6,368
Net secondary income-713-280433
  1. For sign conventions, see the Concepts section in the Explanatory notes in the Methodology.

Terms of trade

Relationship between IPD, EPI and IPI

Balance on goods and services

In seasonally adjusted chain volume terms, the balance on goods and services was a surplus of $11,661m, a fall of $1,012m on the revised June quarter 2022 surplus of $12,673m. 

The fall in the balance on goods and services surplus of $1.0 billion (seasonally adjusted chain volume measure) is expected to detract 0.2 percentage points from the September 2022 GDP quarterly movement. 

 

  1. Seasonally adjusted, reference year 2020-21.

Exports of goods (credits)

In seasonally adjusted terms at current prices, goods credits fell $2,540m (1.6%) to $152,702m, with volumes up 1.4% and prices down 3.0%. 

 

 

Goods credits, price and volume change - seasonally adjusted - September quarter 2022
  Current prices ($m)Current prices (%)Chain volume measures (a) (%)Implicit price deflators (a)(b)(%)
Exports of goods-2,540-1.61.4-3.0
 Rural goods2,21412.59.82.5
 Non-rural goods-5,042-3.9-0.6-3.3
 Net exports of goods under merchanting-1-1.312.7-12.2
 Non-monetary gold2884.07.9-3.6
  1. Reference year 2020-21=100.
  2. Movements in indexes are calculated from unrounded data.

Rural goods

Non-rural goods

Imports of goods (debits)

In seasonally adjusted terms at current prices, goods debits rose $6,213m (5.8%) to $113,831m, with volumes up 1.5% and prices up 4.2%. 

 

Goods debits, price and volume change - seasonally adjusted - September quarter 2022
  Current prices ($m)Current prices (%)Chain volume measures (a) (%)Implicit price deflators (a)(b)(%)
Total Goods Imports6,2135.81.54.2
 Consumption goods2,1356.71.35.2
 Capital goods1,2405.11.83.2
 Intermediate and other merchandise goods2,9876.11.74.3
 Non-monetary gold-149-7.5-4.2-3.4
  1. Reference year 2020-21=100.
  2. Movements in indexes are calculated from unrounded data.

Consumption goods

Capital goods

Intermediate and other merchandise goods

Services

Services exports, price and volume change - seasonally adjusted - September quarter 2022
  Current prices ($m)Current prices (%)Chain volume measures (a) (%)Implicit price deflators (a)(b)(%)
Exports of services2,15712.310.61.6
 Manufacturing services on physical inputs owned by others----
 Maintenance and repair services n.i.e.110.010.01.3
 Transport20816.113.02.7
 Travel1,57620.318.61.4
 Other services3724.42.91.5

- nil or rounded to zero (including null cells)

  1. Reference year 2020-21=100.
  2. Movements in indexes are calculated from unrounded data.
Services imports, price and volume change - seasonally adjusted - September quarter 2022
  Current prices ($m)Current prices (%)Chain volume measures (a) (%)Implicit price deflators (a)(b)(%)
Imports of services4,49119.716.23.0
 Manufacturing services on physical inputs owned by others----
 Maintenance and repair services n.i.e.-35-21.2-23.73.2
 Transport1,13813.54.78.4
 Travel2,97461.558.02.2
 Other services4144.41.33.1

- nil or rounded to zero (including null cells)

  1. Reference year 2020-21=100.
  2. Movements in indexes are calculated from unrounded data.

Income

The primary income deficit rose by $6,368m to $33,191m in the September quarter 2022.

  1. Seasonally adjusted estimates at current prices.

Primary income credits

In seasonally adjusted terms at current prices, income to residents (credits) fell $543m (2.4%) to $22,411m. The main components contributing to this movement were:

  • Portfolio investment assets - investment income on equity and investment fund shares; down $1,017m (11.6%)
  • Portfolio investment assets - interest; up $304m (11.0%)
  • Other investment assets; up $242m (29.6%)

Primary income debits

In seasonally adjusted terms at current prices income to non-residents (debits) rose $5,825m (11.7%) to $55,602m. The main components contributing to this movement were:

  • Portfolio investment liabilities - investment income on equity and investment fund shares; up $4,960m (75.7%)
  • Portfolio investment assets - interest; up $1,366m (16.4%)
  • Direct investment liabilities - income on equity and investment fund shares; down $1,137m (3.7%)
  • Compensation of employees; up $508m (31.2%)
  • Other investment income; up $301m (17.6%)

Secondary income

In seasonally adjusted terms at current prices, the net secondary income deficit fell $433m to $280m in the September quarter 2022. 

Capital and Financial Account

The capital and financial account recorded a surplus of $7.9b during the September 2022 quarter, mainly driven by the financial account surplus of $8.1b.

The financial account rose due to a $7.7b net inflow of equity and a $0.4b net inflow of debt.

Capital and financial account
   Dec 21Mar 22Jun 22Sep 22Jun 22 to
Sep 22
   ($m)($m)($m)($m)($m)
Capital account-42-186-211-239-28
 Acquisitions/disposals of non-produced non-financial assets138256-11-67
  Acquisitions/disposals of non-produced non-financial assets credits142668--68
  Acquisitions/disposals of non-produced non-financial assets debits-4-4-12-111
 Capital transfers-180-188-267-22839
  Capital transfers credits-----
  Capital transfers debits-180-188-267-22839
Financial account-10,261-3,526-19,3408,10727,447
 Direct investment12,593-57,1266,2741306,404
  Direct investment assets-9,031-120,826-12,676-29,832-17,156
  Direct investment liabilities21,62363,7006,40229,96123,559
 Portfolio investment-15,95956,77339,2855,293-33,992
  Portfolio investment assets-60,032-32,96715,118-2,691-17,809
  Portfolio investment liabilities44,07389,74024,1677,984-16,183
 Financial derivatives-5,064-2,734-1,8535,7987,651
  Financial derivatives assets36,09843,34075,656117,08841,432
  Financial derivatives liabilities-41,162-46,074-77,509-111,290-33,781
 Other investment-114160-50,035-1,39348,642
  Other investment assets-6,292-16,797-32,757-3,73429,023
  Other investment liabilities6,17716,957-17,2792,34219,621
 Reserve assets-1,717-599-462-1,721-1,259
 Net errors and omissions3,6092,089-1,2697642,033

- nil or rounded to zero (including null cells)

International Investment Position

Australia's net IIP liability position was $861.6b at 30 September 2022, an increase of $17.1b on the revised 30 June 2022 figure of $844.6b. Australia's net foreign equity asset position decreased $0.3b to $301.1b at 30 September 2022. Australia's net foreign debt liability position increased $16.7b to $1,162.7b.

International investment position, by net foreign equity and net foreign debt
  Position at beginning of periodTransactionsPrice changesExchange rate changesOther adjustmentsPosition at end of period
Net International Investment Position($m)($m)($m)($m)($m)($m)
 Mar‑22774,963-3,526-42,65440,14563,216832,144
 Jun‑22832,144-19,34069,615-37,88924844,555
 Sep‑22844,5558,10733,474-22,947-1,570861,619
Net Foreign Equity      
 Mar‑22-432,129-6,6757,24760,63662,314-308,606
 Jun‑22-308,606-1,39184,484-74,677-1,203-301,393
 Sep‑22-301,3937,73531,718-36,374-2,741-301,055
Net Foreign Debt      
 Mar‑221,207,0923,148-49,901-20,4909021,140,750
 Jun‑221,140,750-17,948-14,86936,7881,2271,145,949
 Sep‑221,145,9493721,75513,4271,1711,162,674

Supplementary Information

Value adjustments

Revisions

Economic conditions

Data downloads

Time series spreadsheets

Data files

Previous catalogue number

This release previously used catalogue number 5302.0.

Post release changes

07/12/2022 Note: Updates to selected international accounts ratios table 23

Ratios of current account and international investment measures to quarterly GDP and GNI are normally presented in Table 23.

As advised in the 'Changes in this issue' section of this publication, published on 6 December 2022, Table 23 in the 'Data downloads' was updated on 7 December 2022 and released in conjunction with the release of the September quarter 2022 issue of Australian National Accounts: National Income, Expenditure and Product.

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