Australia’s terms-of-trade dives on lower iron ore prices

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Within today’s dump of balance of payments data that feeds into tomorrow’s December quarter national accounts release was the important news that Australia’s terms-of-trade fell by 5.1% in seasonally adjusted terms:

Other things equal, this fall in the terms-of-trade will subtract from national disposable income:

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The full national accounts for Q4 will be released tomorrow morning at 11.30 am.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.