Australia Current Account

Australia's current account deficit decreased to AUD 14.1 billion in Q3 2024 from an upwardly revised AUD 16.4 billion shortfall in Q2, indicating the sixth consecutive quarter of deficit despite missing market expectations of an AUD 10.0 billion gap. The surplus of goods and services shrank to AUD 3.3 billion, the smallest since Q2 2018, from AUD 6.5 billion in Q2, largely attributed to falling export prices amid persistently lower iron ore and coal prices, as global demand remained weak. Meanwhile, the shortfall of net primary income narrowed to AUD 17.3 billion from the prior gap of AUD 22.8 billion, pointing to the smallest since Q3 2021, due to a drop in dividends paid by Australian firms to overseas investors. In addition, the net secondary income deficit widened to AUD 81 million from AUD 47 million in Q2.