Australia's Foreign Liabilities (HSC SSCE Economics): Flashcards
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Net foreign liabilities
Net foreign liabilities
Australia's total financial obligations to rest of world
Net foreign debt
Net foreign debt
Stock of loans Aus owes foreigners minus reverse
Net foreign equity
Net foreign equity
Value of Aus assets owned by foreigners minus reverse
Key difference: debt vs equity repayment
Key difference: debt vs equity repayment
Debt must be repaid; equity doesn't unless sold back
Net foreign liabilities 2022-23 (USD bn & % GDP)
Net foreign liabilities 2022-23 (USD bn & % GDP)
822.2 billion USD (36.9% of GDP)
Debt trap scenario
Debt trap scenario
Cycle where debt grows faster than the economy
Debt servicing ratio
Debt servicing ratio
% of export revenue spent on interest on foreign debt
Debt servicing ratio 2022-23
Debt servicing ratio 2022-23
4.8%
Components of net foreign liabilities
Components of net foreign liabilities
Net foreign debt plus net foreign equity
Australia's credit rating
Australia's credit rating
AAA (one of few countries with this rating)