Australia has just produced a stellar number for the March quarter 2014 current account deficit which, in seasonally adjusted terms, “fell $6,034m (52%) to $5,672m in the March quarter 2014. There was a turnaround of $4,200m on the balance of goods and services, resulting in a surplus of $3,591m in the March quarter 2014”, according to the ABS.
In original terms the deficit of $5,383 million is the lowest quarterly CAD since the March quarter of 2002.
Westpac said the market was expecting net exports to contribute 0.8% to GDP so this is a a really solid result and the ABS says that it will contribute a huge 1.4% to Q1 GDP when it is released tomorrow at 11.30am AEST. Expect to read about GDP revisions later today.