FX.co ★ Australia Posts Largest Current Account Gap on Record

Australia’s current account deficit widened to AUD 27.1 billion in the first quarter of 2026, up from an upwardly revised AUD 23.0 billion in the previous quarter and exceeding market expectations of a AUD 23.0 billion shortfall. This marked the largest current account deficit on record, driven by a sharp deterioration in the goods and services balance, which swung to a AUD 2.4 billion deficit from a AUD 1.1 billion surplus in Q4. The secondary income deficit also widened, to AUD 1.0 billion from AUD 0.8 billion, while the primary income deficit increased to AUD 23.7 billion in Q1 2026 from AUD 23.3 billion in the prior quarter. “Trade in goods and services fell into deficit for the first time since the December quarter of 2017, with exports of mining commodities declining and imports of data centre equipment and fuels increasing,” said Jonathon Khoo, ABS head of international statistics.