Australian Current-Account Deficit Narrows as Iron Ore, Coal Exports Surge
Australia’s current-account deficit narrowed in the three months through June as exports of iron ore and coal surged. The shortfall on goods, services and investment moved to A$5.64 billion ($5.05 billion) from a revised A$16.5 billion in the first quarter, the Bureau of Statistics said in Sydney today...The current account is the broadest measure of trade because it includes investment flows as well as goods and services shipments. A deficit represents money Australia has to borrow overseas to pay for the goods and services it imports, and to finance investment not covered by local savings.
Narrowly avoiding our Greek tragedy
If iron ore and coal prices were to drop back to 2002 levels, Australia's budget would be looking as bad as that of Greece. And the nation's future would be in the hands of the IMF. The deficit would be above $100 billion and approaching 10 per cent of GDP. No one is forecasting such a fall -- indeed both Treasury and the Reserve Bank expect only a modest correction in resource prices as the China boom continues indefinitely. However, the analysis shows how narrowly based Australia's prosperity is.
Australian expertise helps rescue effort
Hundreds of rescuers are using equipment from Australia and the US in the rescue of 33 miners trapped deep underground in a collapsed Chilean gold and copper mine. The Chilean government has contacted an Australian service company to the mining industry to acquire remote tele-locators for use in the mine rescue...The Chilean government contacted Coal Services, which specialises in occupational health and safety, mine rescue and workers compensation.
