Australia’s current account balance improved slightly last quarter, but still added to a long run of deficits stretching back more than two years.
Australian Bureau of Statistics (ABS) data showed the current account balance rose by $0.4 billion in June quarter, to a deficit of $13.7 billion.
ABS head of international statistics Jonathon Khoo said the small rise was due to a $1.2 billion increase in the net primary income balance, offset by a $1.2 billion decrease in the goods and services surplus.
Mr Khoo said growth in investment inflows on Australian holdings of overseas equity saw the net primary income deficit narrow to its lowest level since September 2021.
The current account deficit was the ninth in succession, with the last surplus, of $3.5 billion, in the March 2023 quarter.
Mr Khoo said Australia’s terms of trade fell 1.1 percent from the March quarter 2025 and was 2.4 percent lower compared to June quarter 2024.
He said commodity price falls, particularly for iron ore and coal, drove this fall.
“Iron ore prices fell amid international trade uncertainty and higher global supply, while coal prices fell for the third consecutive quarter, reflecting weak global demand.”
