A lower cost of funding via foreign liabilities, a higher return on overseas assets and falling capital goods imports should all support Australia’s current account over the next couple of years. However, we think that those tailwinds will all be overwhelmed by a renewed slump in the terms of trade. Our forecast is that the current account will fall from around 0.2% of GDP this year to -0.5% in 2020 and deteriorate further to -1% in 2021.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services