Australia's current account balance rose by $1.7 billion in March quarter 2025 (seasonally adjusted, current prices) to a deficit of $14.7 billion, according to figures released today by the Australian Bureau of Statistics (ABS).
Tom Lay, ABS head of international statistics, said: 'The rise in the current account balance was led by a $1.9 billion reduction in the net income deficit, which was partly offset by a $0.2 billion fall in the goods and services surplus.'
'Commodity price falls, notably coal, led to Australian mining businesses seeing lower profits flow to foreign direct investors, which reduced Australia's income outflows.'
Australia's terms of trade rose 0.1 per cent from the December quarter 2024, the second quarterly rise in a row, but lower than the same time last year.
Imports of goods and services rose 2.2 per cent in the quarter.
Imports of goods rose 3.1 per cent, led by Fuels and lubricants, with the first rise in prices since the December quarter 2023. Processed industrial supplies also rose, led by imports of copper and fertilisers.
Imports of services remained steady, with falls in Transport and Travel services balanced by a rise in Other services.
'This comes as Australians continue to holiday closer to home, and were more often visiting friends and relatives,' Mr Lay said.
Exports of goods and services rose 1.9 per cent in the quarter.
Exports of goods rose 2.9 per cent, following a rise of 2.3 per cent last quarter. This was the first consecutive growth in exports since the June quarter 2022.
The March rise was led by Non-monetary gold, with more gold being exported and prices continuing to rise from previous highs in the December quarter 2024.
'The $4.8 billion rise in Non-monetary gold exports was the highest on record. It was led by $11 billion of Non-monetary gold exports to the USA, which was larger than the total combined value of Non-monetary gold exports to the USA over the past four years,' Mr Lay said.
Excluding the contribution from gold, goods exports fell 1 per cent from the December quarter, with Coal and Other mineral fuels leading the fall. Coal and Other mineral fuels fell following weather events impacting production and port output coupled with a significant price fall for coal.
Exports of services fell 1.7 per cent this quarter, with a 2.8 per cent fall in Travel services.
Exports of Education-related travel declined in the March quarter with a smaller than average rise in the number of students in Australia along with reduced expenditure.
| Current account balance ($b) | Net goods & services ($b) | Net primary income ($b) | |
|---|---|---|---|
| Mar-20 | 3.3 | 14.3 | -10.7 |
| Jun-20 | 12.6 | 20.5 | -7.3 |
| Sep-20 | 7.5 | 11.5 | -3.4 |
| Dec-20 | 10.8 | 15.8 | -4.2 |
| Mar-21 | 16.2 | 22.9 | -6.2 |
| Jun-21 | 16.8 | 28.7 | -10.5 |
| Sep-21 | 19.3 | 34.6 | -14.5 |
| Dec-21 | 0.3 | 22.2 | -21.0 |
| Mar-22 | 0.6 | 24.3 | -22.8 |
| Jun-22 | 9.5 | 40.9 | -30.6 |
| Sep-22 | -3.8 | 28.5 | -32.0 |
| Dec-22 | 2.9 | 30.9 | -27.6 |
| Mar-23 | 3.1 | 30.6 | -27.2 |
| Jun-23 | -1.3 | 22.0 | -23.0 |
| Sep-23 | -7.1 | 16.0 | -22.6 |
| Dec-23 | -2.0 | 20.6 | -22.4 |
| Mar-24 | -9.2 | 12.7 | -21.8 |
| Jun-24 | -15.7 | 7.2 | -22.9 |
| Sep-24 | -13.8 | 3.8 | -17.5 |
| Dec-24 | -16.3 | 5.4 | -21.6 |
| Mar-25 | -14.7 | 5.2 | -19.4 |
(a) seasonally adjusted estimates at current prices
The net primary income deficit narrowed by $2.2 billion (-$19.4 billion) in the March quarter 2025, following a $2.6 billion fall in primary income debits (outflows), and a $0.3 billion drop in primary income credits (inflows).
The $2.6 billion fall in outflows was driven by lower profits earned by foreign direct investment in Australia. This reflected weaker mining commodity prices, notably coal. Coal mining makes up a relatively high proportion of foreign direct investment in Australia.
The slight fall in inflows was due to smaller returns on Australian direct investment holdings, partly offset by larger returns on Australian portfolio investment holdings of equity and debt.
| Net primary income ($b) | Primary income credits ($b) | Primary income debits ($b) | |
|---|---|---|---|
| Mar-20 | -10.7 | 16.9 | -27.6 |
| Jun-20 | -7.3 | 14.2 | -21.5 |
| Sep-20 | -3.4 | 15.4 | -18.8 |
| Dec-20 | -4.2 | 14.3 | -18.6 |
| Mar-21 | -6.2 | 15.8 | -22.0 |
| Jun-21 | -10.5 | 15.8 | -26.3 |
| Sep-21 | -14.5 | 17.7 | -32.2 |
| Dec-21 | -21.0 | 18.6 | -39.6 |
| Mar-22 | -22.8 | 20.3 | -43.2 |
| Jun-22 | -30.6 | 23.2 | -53.8 |
| Sep-22 | -32.0 | 22.4 | -54.4 |
| Dec-22 | -27.6 | 24.8 | -52.4 |
| Mar-23 | -27.2 | 22.5 | -49.7 |
| Jun-23 | -23.0 | 23.6 | -46.6 |
| Sep-23 | -22.6 | 24.8 | -47.3 |
| Dec-23 | -22.4 | 24.4 | -46.8 |
| Mar-24 | -21.8 | 26.2 | -48.0 |
| Jun-24 | -22.9 | 26.1 | -49.0 |
| Sep-24 | -17.5 | 27.9 | -45.3 |
| Dec-24 | -21.6 | 27.4 | -49.0 |
| Mar-25 | -19.4 | 27.1 | -46.5 |
(a) seasonally adjusted estimates at current prices
The financial account had a surplus of $6.4 billion, driven by net inflows of debt (+$9.3 billion) and partly offset by net outflows of equity (-$2.8 billion).
Australia's net international investment liability position narrowed by $8.9 billion to $672.6 billion, its lowest level since June quarter 2008. This was due to a greater fall in Australia's foreign liabilities (-$128.5 billion) than foreign assets (-$119.6 billion).
'Australia's net international investment liability position remains at historically low levels,' Mr Lay said.
'This was despite market volatility that saw the largest quarterly fall in value of Australia's investments overseas and foreign investments in Australia since the June quarter 2022.'
Australia's net foreign equity asset position fell by $1.5 billion to $729.5 billion.
Australia's net foreign debt liability position fell by $10.4 billion to $1.4 trillion, reflecting exchange rates changes and market revaluations, which offset inflows of debt.
The $0.7 billion fall in net trade (seasonally adjusted, chain volume measure) is expected to subtract 0.1 percentage points from the March quarter 2025 Gross Domestic Product (GDP) movement.
