SYDNEY, March 1 (Reuters) - Australia's current account surplus shrank sharply last quarter as imports outstripped exports and hefty dividend payments flowed offshore, though net exports were still a much smaller drag on growth than first thought.
Data from the Australian Bureau of Statistics on Tuesday showed the current account surplus narrowed to A$12.7 billion ($9.22 billion), from A$22 billion in the third quarter and compared market forecasts of A$14.9 billion.
Yet net exports trimmed only 0.2 percentage points from gross domestic product in the quarter, when analysts had looked for a 1.0 percentage point hit, suggesting upside risk for growth.
Figures for fourth-quarter GDP are due on Wednesday and were expected to show a hefty 3% rise as consumer demand surged back from coronavirus lockdowns.
($1 = 1.3782 Australian dollars)
