Particle.news

Australia Posts Tenth Straight Current Account Deficit

Higher fuel import bills from a Middle East oil shock plus large data‑centre capital imports have widened the deficit, signaling weaker GDP growth and added pressure on the budget.

Overview

  • The Australian Bureau of Statistics reported the current account deficit slipped 0.8% to $5.1 billion in chain volume, marking the tenth consecutive negative reading.
  • ABS data for the March quarter showed the wider current account gap at A$27.1 billion as exports fell and costly imports rose.
  • Surging global oil prices after the USIran conflict drove up fuel import bills, which materially increased the deficit.
  • Large capital imports for data‑centre build‑outs, including bulk purchases of AI server racks, pushed investment imports to record levels and added to the shortfall.
  • Economists expect a weak March‑quarter GDP print, with forecasts ranging from about 0.2% to 0.5% growth, a backdrop made tougher by recent Reserve Bank rate rises and tighter public finances.