By continually running current account deficits, Australia:

Question

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By running current account deficits, Australia is effectively spending more than it is earning. This means that there is a net outflow of funds from the country, which can lead to a decrease in the value of the currency and an increase in foreign ownership of domestic assets. Although it is possible for capital account surpluses to offset current account deficits, this is not always the case, and in the long run, persistent deficits can have negative consequences for a country's economy. However, it is not accurate to say that Australia is experiencing a lower standard of living as a result of its current account deficits, as this is determined by a range of factors beyond the balance of payments.

By Continually Running Current Account Deficits, Australia