Australia’s current account deficit is the largest in six years, according to the latest Australian Bureau of Statistics (ABS) data.
ABS Head of International Statistics Tom Lay said Australia’s current account balance fell by $4.4 billion, to a deficit of $10.7 billion in the June quarter of this year.
“This quarter’s current account deficit was the largest since June quarter 2018, reflecting continued falls in bulk commodity prices and higher income paid to non-residents,” Mr Lay said.
He said the balance on goods and services fell $3.9 billion to $12 billion and the net primary income deficit rose $0.5 billion to $22.5 billion.
“Exports of goods fell 4.4 percent, with lower prices for iron ore and coal driving the decrease.
“Iron ore and coal prices saw a second quarterly fall, which is reflected in goods export prices 5.4 percent lower, compared to this time last year,” he said.
Mr Lay said exports of cereal grains and cereal preparations also fell due to reduced Australian wheat production in the 2023-24 season following record highs in the last two seasons.
He said imports of goods fell 0.6 percent driven by capital goods, reflecting fewer imports of mining equipment.
Australia’s terms of trade fell 3.0 percent from last quarter and was down 3.8 percent from June quarter 2023.
“The quarterly fall in the terms of trade largely reflected a fall in export prices (-3.0 percent), with imports prices remaining unchanged.”
Mr Lay said the financial account had a surplus of $9.4 billion, driven by net inflows of debt (+$9.1 billion) and net inflows of equity (+$0.2 billion).
