Australian export prices fall in record slump

15:33, December 08, 2009      

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A sharp widening in the current account deficit reflected the continuing impact of the global recession, Australian Treasurer Wayne Swan said on Tuesday.

The balance of payments for the September quarter indicated widening in the current account deficit to a seasonally- adjusted 16.18 billion Australian dollars (14.78 billion U.S. dollars) from a revised 13.13 billion Australian dollars (12 billion U.S. dollars) in the previous quarter.

Economists' forecasts centered on 16.8 billion Australian dollars (14.78 billion U.S. dollars) deficit in the September quarter.

Net exports will subtract 1.8 percentage points from GDP due for release on December 16, when economists had expected a smaller subtraction of 0.3 percentage points.

Record falls in export prices during the past year had impacted heavily on the Australian economy, Swan said.

Export prices fell by a further 1.8 percent in the September quarter, taking the fall during the past year to 19.5 percent.

"This is the largest through-the-year fall in export prices in the history of the series dating back to 1959," Swan said in a statement, adding that it reflected the dramatic impacts of the global recession.

Source: Xinhua
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