The Atlanta Fed's macroblog provides commentary on economic topics including monetary policy, macroeconomic developments, financial issues and Southeast regional trends.
- BLS Handbook of Methods
- Bureau of Economic Analysis
- Bureau of Labor Statistics
- Congressional Budget Office
- Economic Data - FRED® II, St. Louis Fed
- Office of Management and Budget
- Statistics: Releases and Historical Data, Board of Governors
- U.S. Census Bureau Economic Programs
- White House Economic Statistics Briefing Room
June 01, 2005
Another Record Current Account Deficit -- No, Not The U.S.
From the Wall Street Journal (page A18 in the print version):
Australia's current-account deficit widened to a record A$15.65 billion (US$11.82 billion) in the first quarter, sending an already shaky Australian dollar even lower...
Australia's current-account deficit reached more than 7.2% of gross domestic product. The current account is one gauge of a country's balance of payments of all its international transactions, public and private, and provides the broadest measure of trade in goods and services and investment earnings.
While Australia's trade deficit narrowed slightly during the quarter, the improvement wasn't enough to offset a widening of the net-income deficit that measures capital flows.
Meanwhile, the Financial Times reports on a disappointing GDP report:
The Australian economy rebounded to expand by an annualised 1.9 per cent in the first quarter but the improvement was weaker than expected and may be short-lived because it was fuelled by a build up in inventories.
Data released Wednesday showed gross domestic product rose 0.7 per cent in the first three months of the year, up from 0.3 per cent in the fourth quarter, a revision from the 0.1 per cent initially announced.
First quarter growth was ahead of the annualised rate of the 1.5 per cent recorded in the previous quarter but below the 2.2 per cent expected by economists who had targeted an upturn of 0.9 per cent for the quarter...
The data confirms that Australia whose economy is in its 14th consecutive year of expansion has entered a period of economic underperformance.
The slowdown in growth, which has averaged more than 3 per cent a year over the past decade, contrasts with the 3.7 per cent and 2.7 per cent recorded in the US and UK respectively in the first quarter.
Naturally, the commentary turns to the dilemma this poses for the central bank:
... the weakening data means the Reserve Bank is unlikely to raise rates in the near term, with economists almost unanimous that it will not act after its upcoming monetary policy meeting.
The bank raised rates for the first time in over a year in March, to 5.5 per cent, and, with inflation creeping towards the top of its 2 to 3 per cent target range, has suggested it may need to act again.
TrackBack URL for this entry:
Listed below are links to blogs that reference Another Record Current Account Deficit -- No, Not The U.S.:
- What's behind the Recent Uptick in Labor Force Participation?
- Is the Number of Stay-at-Home Dads Going Up or Down?
- Labor Force Participation: Aging Is Only Half of the Story
- Putting the MetLife Decision into an Economic Context
- The Rise of Shadow Banking in China
- Which Wage Growth Measure Best Indicates Slack in the Labor Market?
- Collateral Requirements and Nonbank Online Lenders: Evidence from the 2015 Small Business Credit Survey
- Are Paychecks Picking Up the Pace?
- Introducing the Refined Labor Market Spider Chart
- Shrinking Labor Market Opportunities for the Disabled?
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- Business Cycles
- Business Inflation Expectations
- Capital and Investment
- Capital Markets
- Data Releases
- Economic conditions
- Economic Growth and Development
- Exchange Rates and the Dollar
- Fed Funds Futures
- Federal Debt and Deficits
- Federal Reserve and Monetary Policy
- Financial System
- Fiscal Policy
- Health Care
- Inflation Expectations
- Interest Rates
- Labor Markets
- Latin America/South America
- Monetary Policy
- Money Markets
- Real Estate
- Saving, Capital, and Investment
- Small Business
- Social Security
- This, That, and the Other
- Trade Deficit
- Wage Growth