ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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an unfavourable balance of trade
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susbtantial deficits on transport, interst and dividends
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declining gold production in Australia
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the increased importance of capital equipment in the economy
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Detailed explanation-1: -Australia suffers from a persistent Current Account Deficit (CAD) due to outflows in the Current Account exceeding inflows. This is directly caused by the NPY and BOGS balances.
Detailed explanation-2: -Australia has recently recorded a current account surplus for the first time since 1975 thanks to higher volumes of Australian resources exports and higher prices.
Detailed explanation-3: -It is calculated by subtracting the value of the goods and services Australia buys from overseas from the value of the goods and services we sell to other countries. As of January 2023, Australia’s trade balance was $11, 688 million (seasonally adjusted).
Detailed explanation-4: -Australia’s current account surplus increased by $13.4 billion to $14.1 billion (seasonally adjusted, current prices) in the December quarter 2022, according to figures released today by the Australian Bureau of Statistics (ABS).