Australia Current Account to GDP

Australia Current Account to GDP The Current Account in Australia was last reported at -2.6 % of GDP. From 1980 until 2010, Australia's average Current Account as % of GDP was -4.25 % reaching an historical high of -2.00 % in December of 2001 and a record low of -6.20 % in December of 2007. Usually, when Australia records a strong current account, its Gross Domestic Product expands boosted by exports revenues. Also, Australia's exchange rate appreciates as investors begin to expect higher interest rates going forward. However, when Australia reports a stronger than expected current account to GDP, it may also lead to economic overheating and a general rise in prices, also known as inflation, which will make Australia's products less competitive when sold abroad. This page includes a chart with historical data for Australia's Current Account as a % of GDP.

Current Account to GDP

Current account balance as a percent of GDP (current account to GDP) is the current account a country has in percentage of its Gross Domestic Product. The current account is one of the two most important components of the balance of payments; the other is the capital account. The current account is the sum of the balance of trade (exports minus imports), net factor income (interest and dividends) and net transfer payments (foreign aid). Current account balance as a percent of GDP indicates the nature of a country's foreign trade. Usually, countries recording a strong current account surplus have an economy heavily dependent on exports revenues, with a high savings ratings but weak domestic demand.