For the second quarter in succession, higher export commodity prices contributed to a narrowing of the current account deficit in the December quarter 2016, according to latest figures from the Australian Bureau of Statistics (ABS).

The seasonally adjusted current account deficit fell $6,348 million (62 per cent) to $3,853 million in the December quarter 2016. In seasonally adjusted terms, the balance on goods and services surplus in the December quarter 2016 is the highest on record at $4,667m. Exports of goods and services rose $9,668 million (12 per cent) and imports of goods and services rose $1,462 million (2 per cent). The primary income deficit rose $1,843 million (30 per cent).

In volume terms exports grew faster than imports this quarter and so international trade is expected to contribute 0.2 percentage points to growth in the December quarter 2016 Gross Domestic Product. In seasonally adjusted chain volume terms, the balance on goods and services surplus increased $700 million (49 per cent) to $2,124 million.