Balance of Payments

Current account deficit narrowed slightly to A$13.7b in Q2. Market participants had expected the deficit to widen to A$16.0b. The ABS estimates that net trade added 0.1ppts to Q2 GDP growth, while the change in inventories reduced GDP growth by 0.4ppts and public sector demand was neutral.

Current account deficit narrowed to A$14.6b in Q1, from a revised A$16.3b in the previous quarter. The improvement driven by narrowing in net primary income deficit amid lower foreign investor profits. This was partly offset by a slight decline in trade surplus, with a 2.2% rise in imports being faster than a 1.9% increase in exports.

Australia’s seasonally adjusted current account deficit narrowed by A$1.3b to A$12.5b in Q4. The improvement in current account balance was driven by a higher trade surplus, which was partly offset by a deterioration in net primary income deficit.

Australia’s seasonally adjusted current account balance rose A$2,202m to -A$14,149m in Q3, from a -A$16,351m in the previous quarter, which was the widest deficit in eight years. The Q3 current account deficit was the sixth consecutive one in a row.

Australia’s seasonally adjusted current account balance fell by A$4,436m to -A$10,725m in Q2, from a revised -A$6,289m (originally -A$4,896m) in Q1. Market participants expected a current account balance of around -A$5,000m.

Australia’s seasonally adjusted current account balance turned back to negative in Q1, dropping to -A$4,896m from the downwardly revised +A$2,667m (originally +A$11,800m) in Q4 2023.