Weaker GDP growth expected after current account swings into deficit

Australia’s current account plunged into a $4.9bn deficit in the first three months of 2024, far weaker than a forecast $5.1bn surplus.

Across the quarter, goods export volumes declined, reflecting reduced local coal and iron ore production; however, this was more than offset by an increase in good import volumes, led by a sharp restocking of consumer goods.

Meanwhile, services exports edged higher across the March quarter, as an increase in tourism was partly offset by falling international student numbers. However, with Australians shunning international holidays services imports were soft.