Economists and politicians have long debated the significance of a current account surplus or deficit to Australia’s economic health and the latest surplus streak is not necessarily a positive.
A historic U-turn in Australia’s transactions with the rest of the world is transforming the economic landscape and reviving ghosts of an old political stoush.
The country’s balance of payments has sharply reversed since a widening current account deficit caused then-treasurer Paul Keating to infamously warn in 1986 that Australia risked becoming a “banana republic”.
John KehoeEconomics editorJohn Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
