Australia’s current account deficit widened to AUD 21.1 billion in the fourth quarter of 2025, up from an upwardly revised AUD 18.3 billion in the previous quarter and surpassing market expectations of a AUD 16.3 billion shortfall. This was the largest current account gap since Q4 2015.
The deterioration was driven by several factors. The goods and services surplus narrowed slightly to AUD 1.3 billion, from AUD 1.4 billion in Q3. At the same time, the secondary income deficit increased to AUD 0.9 billion, compared with AUD 0.5 billion previously.
The primary income deficit widened markedly, rising to AUD 21.7 billion in Q4 2025 from AUD 19.2 billion in the prior quarter. This shift reflected a AUD 1 billion fall in primary income credits (inflows), combined with a AUD 1.6 billion increase in primary income debits (outflows). The decline in inflows was largely attributable to weaker profits from direct investment assets, which dropped by 11.2%.