debt blows out deficit.

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    So much for GOOD economic management, they'd better get the IR through soon, hang onto your hats....

    Trade deficit blows out 13pc

    New current account deficit figures show Australia's disappointing trade performance is continuing to retard official measures of economic growth.

    With Australia's interest bill on its foreign debt rising and the value of imports outstripping exports the deficit has widened to $13.5 billion for the September quarter.

    That is a 13 per cent increase - significantly more than had been anticipated.

    The Australian Bureau of Statistics says the trade performance will strip 0.3 of a percentage point off gross domestic product growth (GDP) in the quarter.

    The GDP figure will be released on Wednesday.

    In the meantime, Australia's net foreign debt has been substantially fuelled by increased borrowing and has blown out to $450 billion.

    There is some encouragement from increased business investment spending figures, which are up 3 per cent in the quarter to $16.3 billion.
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