Current account deficit improves

The September quarter's balance of payments continues to demonstrate the strength of Australia's services exports and the increased returns for Australian investors holding assets abroad, according the latest Australian Bureau of Statistics figures.

These factors have helped reduce Australia's current account deficit by $4.6 billion, to $11.4 billion in the September quarter.

Services exports were up 2.4 per cent in real terms in the quarter and are continuing to support the economy as mining investment returns to normal levels.

The ongoing strength in our education and tourism exports reflects Australia's approach in welcoming foreign students and tourists. Travel related services exports were up 2.9 per cent in real terms.

Trade is still making a healthy contribution to Australia's annual growth, and our terms of trade have increased, up 4.5 per cent in the quarter.

Updated trade data due to be released later this week is anticipated to show the improving trade outcomes from the last year or so, including growth in the value of commodity exports and ongoing improvement in Australia's trade balance.