MELBOURNE (Standard&Poor's) Nov. 30, 2004--In the third quarter of 2004, Australia's current account deficit surged 16% quarter on quarter, bringing this deficit to an annualized 6.5% of GDP. This is a spike and one not forecast, which has brought the issue into focus. Nevertheless, Standard&Poor's Ratings Services does not consider a one-quarter blowout in the balance of trade to be of major concern for the sovereign's 'AAA' rating. The recent pressure on the current account deficit is from weak export growth and robust imports. "The unexpected surge in the current account deficit is not necessarily a bad thing for Australia, but could indicate the overall health of the economy," says Brendan Flynn, credit analyst in Standard
