Thursday, March 6, 2008
.Mr Rennie said a disturbing feature of the current account was Australia’s growing reliance on debt funding.
POOR exports and tumbling returns from Australia's overseas investments have dragged the current account deficit to 7 per cent of GDP, its worst level in at least 50 years. The deficit topped $20 billion in the December quarter. The trade deficit rose by $2billion to $6.9 billion because of poor sales of both rural and mineral commodities. aSome recovery in exports is expected in coming months, but the continuing blow-out in Australia's deficit resulting from dividend and interest payments is likely to get worse.