FED: Aust current account deficit blows out to new = 2

AAP General News (Australia)
08-30-1999
FED: Aust current account deficit blows out to new = 2

Treasurer Peter Costello said last week he expected the current account to be "in the
sixes" as a percentage of gross domestic product (GDP) - which is consistent with today's
data.

Economic growth data for the June quarter is due for release on Wednesday.

The ABS said the goods and services deficit ballooned by $727 million in the June quarter
mainly due to a continued fall in exports of both rural and non-rural goods, which began in
mid 1998.

Exports of goods plunged by $809 million while goods imports were down $94 million.

Rural goods exports were down $325 million on the previous quarter, with wool and sheepskin
the only rural commodity showing a rise in sales.

The rise in the volume of wool and sheepskin sold more than offset a slight price decline,
the ABS said.

Exports of non-rural goods fell $337 million or two per cent compared to the previous
quarter.

The largest falls were in coal, coke and briquettes, down $220 million or 10 per cent, and
metal ores and minerals, down $202 million or seven per cent.

The drop reflected substantial price falls, the ABS said.

Non-monetary gold sales fell $161 million - reflecting seven per cent falls in both price
and volume.

Imports of consumption goods fell by $113 million, or two per cent, in the quarter,
reflecting a three per cent fall in price and a one per cent volume increase.

All categories of consumption goods imports were down except food and beverages, which rose
one per cent.

Capital goods imports fell $116 million or two per cent.

AAP ear/mfh/ah/br

KEYWORD: BOPS 2 CANBERRA

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