Explain the reasons for trends since 2016 in the size and composition of Australia’s Balance of Payments. In your answer, refer to the information provided.
The COVID-19 recession and associated international border closures resulted in a sharp decline in education and tourism service exports, but exports of these services have grown strongly in recent years following the re-opening of the border. The composition of Australia’s capital flows has also changed significantly in the past decade or so. Unlike in the past, Australia’s economy since 2017 has generated savings in excess of domestic investment. © Reserve Bank of Australia, 2022
[Chart showing current account balance, net goods and services, and net primary income from September 2016 to September 2024, in $ billion]