SYDNEY, Feb. 28 (Xinhua) -- Australia has reported its lowest current account deficit in nearly 20 years on Tuesday, with exports driving the strong result for the nation.
The figures released by the Australian Bureau of Statistics show the current account deficit for the December quarter to be 3.85 billion dollars (2.959 billion U.S. dollars), a 62 percent drop from the previous quarters 10.2 billion dollar deficit.
The improvement in the country's fortunes was driven by strong results in Australia's exports, with a robust 9.668 billion dollar increase, representing 12 percent growth for the period, while imports were also up by 1.462 billion dollars, or 2 percent.
Commodity price increases of late have helped boost the economy, with the price of iron ore rising sharply during the quarter, pushing up the value of Australia's exports.
Riki Polygenis, Head of Australian Economics at the National Australia Bank, told Xinhua that the figures were improved largely by the trade balance, but were offset somewhat by the increase in the net deficit.
"Given the high level of foreign ownership in mining, and we've seen a large pickup in mining export earnings, and that reflected in a pickup in the net income deficit," Polygenis said.
But Polygenis said expectations about Australia's economic performance be tempered, as the gains may prove to be temporary.
"Our view is that the current spike in bulk commodity prices will unwind over the course of 2017, and into 2018, so in our view it will be a temporary improvement,"
"We are not expecting there to be the flow on benefits to investment and employment that we saw in previous periods of high commodity prices."
The current account is a broad measure of trade by Australia, and shows goods and services shipments and investment flows.
