Australia Q2 Current Account Gap Hits Record High

2026-09-01 01:39 By Chusnul Chotimah 1 min. read

Australia’s current account deficit widened to AUD 27.2 billion in the second quarter of 2026 from a downwardly revised AUD 25.4 billion in the previous quarter, below market expectations of an AUD 30 billion shortfall.

It was the largest current account deficit on record, as the goods and services deficit increased sharply to AUD 5.1 billion from AUD 2.9 billion in Q1, due to a sharp rise in imports amid rising oil prices, as the ongoing conflict in the Middle East tightened global supply and output.

Meanwhile, the secondary income deficit fell to AUD 0.3 billion from AUD 0.6 billion, while the primary income deficit was almost unchanged at AUD 21.9 billion.

“The primary income deficit is the largest proportion of the current account deficit.

When combined with the larger deficit on trade in goods and services, it is expected to push the current account deficit to its highest share of nominal GDP since the June quarter 2016,” Jonathon Khoo, ABS head of international statistics, said.



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Australia Q2 Current Account Gap Hits Record High
Australia’s current account deficit widened to AUD 27.2 billion in the second quarter of 2026 from a downwardly revised AUD 25.4 billion in the previous quarter, below market expectations of an AUD 30 billion shortfall. It was the largest current account deficit on record, as the goods and services deficit increased sharply to AUD 5.1 billion from AUD 2.9 billion in Q1, due to a sharp rise in imports amid rising oil prices, as the ongoing conflict in the Middle East tightened global supply and output. Meanwhile, the secondary income deficit fell to AUD 0.3 billion from AUD 0.6 billion, while the primary income deficit was almost unchanged at AUD 21.9 billion. “The primary income deficit is the largest proportion of the current account deficit. When combined with the larger deficit on trade in goods and services, it is expected to push the current account deficit to its highest share of nominal GDP since the June quarter 2016,” Jonathon Khoo, ABS head of international statistics, said.
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