Eco BoP statistics - Summaries about economics balance of payments PDF

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Summary

Summaries about economics balance of payments in topic 2 of HSC economics...

Description

Trends in BoP statistics Jun Qtr 2019

Sep Qtr 2019

Jun Qtr 2019 to Sep Qtr 2019

$m

$m

% change

Trend estimates

3 981

8 384

111

Seasonally adjusted

4 669

7 855

68

Trend estimates

18 633

22 145

19

Seasonally adjusted

19 266

21 065

9

Trend estimates

-14 515

-13 655

6

Seasonally adjusted

-14 629

-13 033

11

Net foreign liabilities

997 966

975 989

-2

Net foreign equity

-144 938

-187 354

-29

Net foreign debt

1 142 904

1 163 343

2

BALANCE ON CURRENT ACCOUNT

BALANCE ON GOODS AND SERVICES

NET PRIMARY INCOME

LEVELS AT END OF PERIOD

CAD Statistics

KAFA Stats

Australia’s BoP performance

Terms of Trade

Significant Written Stats: BOGS: Australia has enjoyed a strong trade performance with a record high during January 2020 at around +$6 billion ● Exports have increased to China to around 31% and this has been a significant factor in the improvement in Aus trade accounts ● However, the largest factor has been the increase in resource exports which has spiked to around $50 billion ○ This has largely been caused by iron ore exports increasing to almost 190 million tonnes ○ The value and volume of iron ore have risen strongly because of a tragic dam collapse in Brazil in January 2019. The company Barlay had to close a lot of mines for safety reason and thus, the demand for iron has been shifted to Australia. ● Moreover, our terms of trade have remained near historical heights at almost 110 highlighting how competitive Aus has been ● Another import factor has been the increase in the services trade balance with an extra 3 million inbound tourists with

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Airbnb helping host and increase productivity Australia’s services trade balance has increased to around $100 million on the back of the strong tourism performance however, this is set to fall with the significant fall in Chinese tourists due to the travel bans from the COVID-19 A fall in private capital expenditure has slowed the import growth ○ LNG X has slowed down A depreciation in the AUD to around about 0.64 USD has helped the competitiveness of trade and thus, improved the trade accounts This has allowed the CA to move into the surplus for the first time in 44 years The AUS economy has also yet to see the full impact of the LNG X Y Net Capital Inflow: Equity has been positive since the GFC and it has remained around 1% of nominal GDP. Debt has also been decreasing with debt also falling to around -2% of GDP. Furthermore, Australia now has a positive net capital inflow and is no longer in need of an external net financing Foreign Debt has remained steady at around 50% of GDP, but the values of equity have also gone into surplus due to the increase in equity prices for super funds Total trade in the world has been slowing since the 1960s

Challenges to free trade!! ● BREXIT ● The US-China trade war and ‘Phase-one’ deal ● Lack of progress on multilateral agreements ● CORONAVIRUS(COVID19)

BOP(Only till September 2019) Components of CA

$m

Export goods

$387,528

Imports Goods

-$320,875

BOG

+$66,653

Net Services

-$3,552

BOGS

$63,101

Net Y

-$59,240

Balance on CA

$3,861...