Australia's Current Account Deficit Widens in June Quarter

MT Newswires Live
2 hours ago

Australia's seasonally adjusted current account deficit widened to AU$27.22 billion in the June quarter from AU$25.45 billion in the previous quarter, data from the Australian Bureau of Statistics showed Tuesday.

The balance on trade in goods and services widened to a deficit of AU$5.1 billion in the June quarter from AU$2.91 billion in the March quarter.

"Trade in goods and services continued to drive the current account deficit, recording the second trade deficit in a row, led by record values of fuels and passenger vehicle imports," said Jonathon Khoo, the Bureau's head of international statistics.

Exports of goods and services increased 2.8%, driven by a 3.9% rise in goods exports, while imports grew 4%, led by a 6.9% increase in goods imports, per the report.

Fuel and lubricant imports rose nearly 43% on higher oil prices, while non-industrial transport equipment imports climbed over 38%, driven by record electric and plug-in hybrid vehicle imports.

"The spike in electric vehicle imports reflects changing consumer preferences, supported by growing fuel security concerns and rising fuel prices," Khoo said.

The net primary income deficit narrowed to AU$21.86 billion in the June quarter from AU$21.95 billion in the previous quarter, the report said.

The capital and financial account recorded a AU$5.3 billion surplus in the June quarter, driven by a AU$7.6 billion surplus in the financial account.

The AU$700 million increase in net trade is expected to add 0.1 percentage points to gross domestic product growth in the June quarter, the report added.

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