Australian Q3 current account balance shows surprise deficit vs. a large surplus expected

Australian balance of payments, current account balance for Q3 2023 has come in at a shock deficit of A$0.2bn

• vs. expected surplus A$3.2bn, prior $7.7bn

Net exports contribution to Q3 GDP -0.6%, much worse than expected

• expected -0.2%, prior +0.8%

Public demand will add 0.3% to Q3 GDP

• rising government spending and thus fiscal stimulus is playing havoc with the Reserve Bank of Australia’s efforts to tame inflation
• Australia government spending rose 1.0% in the quarter
• spending on operational items rose 1.1% in Q3
• total investment in fixed assets by the government and public enterprises rose 0.7%

This article was written by Eamonn Sheridan at http://www.forexlive.com.