Net exports smash into GDP

International investment position from the ABS just now:

Key figures (a)
	Jun Qtr 2020 ($m)	Sep Qtr 2020 ($m)	Jun Qtr 2020 to Sep Qtr 2020 (% change)
Balance on current account (b)	16 345	10 024	-39
Balance on goods and services (b)	22 340	13 625	-39
Net primary income (b)	-5 591	-3 331	-40
Capital and financial account	-17 046	-9 296	-45
International investment position (c)	939 131	942 776	–

Net exports will detract a huge 1.9% from GDP as exports plunged and imports rose:

Balance on current account in current prices, seasonally adjusted (a) – September quarter 2020
	Current prices ($m)	Current prices change ($m)	Current Prices (%)
Balance on current account	10 024	-6 321	-39
Balance on goods and services	13 625	-8 715	-39
Net goods	9 244	-7 417	-45
Net services	4 381	-1 297	-23
Net primary income	-3 331	2 260	-40
Net secondary income	-270	133	-33

The current account surplus fell sharply:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.