Australia’s current account balance experienced a decrease of $500 million in the September quarter, culminating in a deficit of $16.6 billion, according to the Australian Bureau of Statistics (ABS). Despite the overall deficit, the ABS noted that Australia’s quarterly terms of trade have risen for the first time this calendar year. This positive shift is attributed to a 0.1 per cent decrease in export prices being outweighed by a more substantial 0.4 per cent decrease in import prices.
According to Jonathon Khoo, head of international statistics at the ABS, the appreciation of the Australian dollar exerted downward pressure on both import and export prices. However, the impact on exports was mitigated by increased prices for bulk commodities. The import of goods and services saw a rise of 1.1 per cent during the quarter, primarily driven by a 1.4 per cent increase in goods. Exports of goods and services also experienced growth, increasing by 0.9 per cent, with the mining industry playing a significant role through increased exports of metal ores and minerals, as well as coal, coke, and briquettes.
The financial account recorded a surplus of $31.2 billion, propelled by net inflows of debt amounting to $28.4 billion and net inflows of equity totalling $2.8 billion. The ABS also highlighted the significant contribution of international students to Australia’s exports. Expenditure by international students, encompassing tuition, food, accommodation, local transport, and health, is classified as an export in the Balance of Payments statistics. The number of international students studying in Australia has surged almost threefold over the past two decades, reaching 560,057 students and contributing $53.6 billion to Australia’s exports in the 2024-25 financial year.
