Australia’s current account deficit was $52.4 billion last year, the largest in almost 10 years.
The latest Australian Bureau of Statistics (ABS) data, released today, shows the country’s current account balance rose by $1.3 billion in the December quarter of 2024, to a deficit of $12.5 billion.
ABS head of International Statistics Tom Lay said the rise in Australia’s current account was led by the surplus on trade in goods and services increasing $3.7 billion to $7.5 billion.
Mr Lay said this was partly offset by the net primary income deficit, which widened by $2.3 billion to $19.8 billion.
“Australia recorded an annual current account deficit of $52.4 billion for the 2024 calendar year, the largest since 2016.”
He said Australia’s terms of trade rose 1.7 percent from September quarter 2024, 4.8 percent lower than December quarter 2023.
“Despite the annual fall, this was the first rise in the terms of trade since December 2023, driven by growth in export prices for iron ore and gold.”
Mr Lay said exports of goods rose 2.9 percent in the December quarter, after falling 2.3 percent in the September quarter, led by rises in exports of Rural goods.
“Chickpea exports led this growth, as India temporarily lifted tariffs on chickpea imports.
“Higher Metal ores and minerals prices also contributed to export growth, including rises for iron ore and aluminium oxide (alumina).”
He said exports of services were also up (4.6 percent), led by Other services.
“This was driven by rises in intellectual property services related to pharmaceuticals and computer software.
“Other personal travel also rose this quarter, with visitors from the United States of America driving the rise, with overseas travellers benefiting from the depreciation of the Australian dollar against the US dollar.”
Mr Lay said imports of goods rose 1.5 percent, driven by Non-industrial transport equipment, with a rise in electric vehicle imports.
He said processed industrial supplies also rose, with increases in fertiliser imports, while imports of services fell 0.7 percent from September quarter 2024, driven by Travel services.
“The number of Australians travelling overseas remained high following elevated travel to Europe in the September quarter.
“In contrast, the December quarter saw Australians favouring destinations less expensive and closer to home.
“Japan had a large increase in Australian visitors during the quarter, with favourable exchange rates playing a possible factor.”
