Australia's current account deficit widened to A$27.2bn as fuel and vehicle imports rose

Australia's current account deficit widened by A$1.8bn to A$27.2bn in the June quarter, the Australian Bureau of Statistics reported Tuesday. The goods and services deficit widened from A$2.9bn to A$5.1bn.

Fuel carried much of the import increase. Goods imports rose 6.9 percent, while fuel and lubricant imports rose 42.5 percent as crude oil and refined petroleum prices increased. The ABS recorded record values for fuel and passenger vehicle imports.

Australia also brought in more diesel. The agency said the federal government secured additional shipments in response to global supply shortages.

Prices and volume moved differently

The terms of trade fell 1.6 percent as import prices rose faster than export prices. In volume terms, net trade increased by A$0.7bn and is expected to add 0.1 percentage points to June quarter gross domestic product.

Australia's net international investment liability position fell by A$122.8bn to A$638.9bn. That change came from market valuation gains on overseas equities, not a reduction in foreign debt. Net foreign debt liabilities rose by A$63.3bn to A$1.486tn.