• Best of luck to the class of 2019 for their HSC exams. You got this!

Need help (1 Viewer)

Bongo

New Member
Joined
Oct 16, 2018
Messages
4
Gender
Male
HSC
2019
What are the factors that affect Australia's current account deficit?

Is it the structural and cyclical factors to do with BOGS and the primary account?

Any help will be greatly appreciated.
 

KingTings

Member
Joined
Nov 29, 2017
Messages
83
Location
Sydney, NSW
Gender
Male
HSC
2019
Yea.
Since the BOGS and NPI is on the current account, any deficit in those categories leads to deficits in the whole Current Account. NPI is the main contributor.
Cyclical Factors affecting BOGS: Domestic/Global economic growth, exchange rate and terms of trade
Cyclical Factors affecting NPI: Interest repayments and the domestic business cycle.
Structural Factors affecting BOGS: Narrow export base and capacity constraints
Structural Factors affecting NPI: Mainly savings and investment gap.
 

Users Who Are Viewing This Thread (Users: 0, Guests: 1)

Top