FX.co ★ 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, up from a downwardly revised AUD 25.4 billion in the previous quarter and coming in below market expectations of a AUD 30 billion shortfall. This marked the largest current account deficit on record.

The goods and services deficit rose sharply to AUD 5.1 billion from AUD 2.9 billion in Q1, driven by a surge in imports amid higher oil prices, as the ongoing conflict in the Middle East further tightened global supply and output. The secondary income deficit narrowed to AUD 0.3 billion from AUD 0.6 billion, while the primary income deficit was broadly unchanged at AUD 21.9 billion.

“The primary income deficit is the largest component 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 of 2016,” said Jonathon Khoo, ABS head of international statistics.