Australia’s Current Account Deficit

Through looking at the above graph, it is evident that Australia has been in deficit for at least the past 20 years. There are great fluctuations which show that there are periods of time in which Australia’s current account balance has moved closer to 0 however, it is still in the negatives meaning it is still in a deficit. Also, when looking at the IMF’s predicted current account balance figures, it can be seen that they are predicting Australia to fall into a greater deficit.

When looking at the current year, the article “Aust current account deficit jumps” indicates that the current account balance of 2010 is moving towards a greater deficit as the imports continue to increase.