Australia trade deficit widens to $27.2B in June quarter

• Australia recorded a $27.2 billion current account deficit in the June quarter.
• Surging imports of fuel and electric vehicles drove the second consecutive quarterly trade deficit.
• Rising values for coal and lithium exports partially offset the increased import costs.

Australia recorded a current account deficit of $27.2 billion in the June quarter as surging fuel and vehicle imports expanded the national trade deficit, according to data from the Australian Bureau of Statistics.

The result marks the second consecutive trade deficit for the nation, driven largely by a 4% rise in total imports of goods and services.

"Trade in goods and services continued to drive the current account deficit, recording the second trade deficit in a row, led by record values of fuels and passenger vehicle imports," said ABS head of international statistics Jonathon Khoo.

Imports of fuels and lubricants jumped 42.5% due to higher crude prices and government diesel stockpiling, while non-industrial transport equipment imports rose 38.1% on record electric vehicle shipments.

The ABS stated that the primary income deficit is expected to push the current account deficit to its highest share of nominal gross domestic product since the June quarter 2016.

Higher global energy prices helped boost total exports by 2.8%, with thermal coal and lithium leading the gains amidst global supply disruptions.

Net trade is expected to contribute 0.1 percentage points to the overall June quarter gross domestic product movement.