Jan 9, 2013

Ask the economists: is the yawning trade deficit a problem?

Australia's trade deficit is getting bigger by the month, partly due to the ever-strong dollar. Crikey intern Jemimah Clegg asks the economists whether we should be worried.

Australia’s trade deficit is the widest it has been in more than four years. According to the latest Australian Bureau of Statistics trade figures, the difference between imports and exports rose to $2.6 billion for the month of November last year.

The ABS report says the deficit rose by 9% or $197 million between October and November 2012. Many blame the high Australian dollar for the increasing trade deficit. We asked some of Australia’s leading economists if the yawning trade deficit is a problem, and what — if anything — can be done …

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One thought on “Ask the economists: is the yawning trade deficit a problem?

  1. Dulhunty Roger

    The other name for the “trade deficit” is the “capital account surplus”. It sounds much nicer!

    Our new “safe haven” status is driving the capital account surplus which brings with it the improved buying power of our currency and reducing interest rates.

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