Early in 2014 we raised the possibility that the previous couple of centuries of persistent current account deficits were coming to an end. And that there was a chance of small surpluses over the medium term.
The last time I took on the “Australian current account surplus (CAS)” argument in 2014 when LNG prices were soaring and there was the faintest of hopes that it might come true. As I said then, I did not want to be too harsh on the forecast because it would be such an awesome outcome.
However, putting it again today, CBA’s senior economist Michael Blythe has shown himself to be so optimistic that he is a clear and present danger to the bank’s risk management, from Domainfax:
