/www.bloomberg.com/ By Tracy Withers
Sydney, Feb. 28 (Bloomberg) -- Australia's current account deficit probably widened last quarter because slower global economic growth cut into export earnings at the same time as Qantas Airways Ltd. imported passenger aircraft.
The deficit, the broadest measure of trade because it includes investment, probably widened to A$10.7 billion ($6.5 billion) in the fourth quarter, according to the median forecast of 22 economists polled by Bloomberg News. The report will be released March 3 at 11:30 a.m., Sydney time.
The gap is expected to worsen as a drought across one-third of Australia reduces the amount of grain, cotton, wool and milk available for export. Aircraft imports totaled A$1.23 billion in December after Qantas, Australia's largest airline, bought four new jetliners.
``It's an unfortunate mix with the aircraft imports and the drought really impacting on exports,'' said Annette Beacher, senior economist at Salomon Smith Barney/Citibank Ltd. in Sydney.
The third-quarter current account shortfall is expected to have widened to about 5.7 percent of gross domestic product, according to the Bloomberg News survey. The deficit was A$7.87 billion in the third quarter, or 4.3 percent of GDP.
Australia is the world's biggest exporter of beef and wool, and second-largest of wheat and sugar. The nation exports about one- fifth of the total output of goods and services.
An El Nino-induced drought has spread across more than 70 percent of Australia, cutting production of export crops such as wheat.
The report will probably show the change in the overseas trade balance, or so-called net exports, subtracted 1.6 percentage point from economic growth in the fourth quarter, according to the Bloomberg News survey.
Economists forecast the fourth-quarter economic growth report, to be released on March 5, will show the economy grew 0.7 percent from the third quarter and about 3.1 percent from the same period a year ago. Stronger consumer spending, construction and business investment on new equipment is fueling growth.
Bloomberg Survey
The following is a survey of economists' expectations for the fourth quarter current account deficit; the deficit as a proportion of gross domestic product and contribution net exports will make to fourth-quarter GDP.