Australia recorded its ninth straight current account deficit in the second quarter amid elevated global trade uncertainty and falling commodity prices.
The Australian Bureau of Statistics said Tuesday that the current account balance rose by 0.4 billion Australian dollars in the quarter to a deficit of A$13.7 billion, equivalent to US$8.98 billion.
Australia's terms of trade fell 1.1% from the first quarter and was 2.4% lower compared with the same period a year earlier. Commodity price falls, particularly for iron ore and coal, were behind the deterioration, the ABS said.
Imports of goods and services rose 0.8% in the second quarter, led by a 3.4% rise in services imports, the data showed.
Travel services rose 5%, with more Australians travelling to long-haul destinations like the U.K. and Italy for holidays, the ABS added. Travel spots closer to Australia, like Indonesia, also remained popular, it said.
Imports of non-monetary gold reached record levels in the quarter, following strong exports in the first quarter, it added.
Gold prices remained high, while fuel and lubricant prices dropped to their lowest level since mid-2021 due to excess global supply, the ABS said.
Export of goods fell 0.9% in the second quarter, after rising 2.1% in the prior quarter. The fall was led by metal ores and minerals and coal due to price reductions, the data showed.
"Iron ore prices fell amid international trade uncertainty and higher global supply," the ABS said in a statement.
Export of services was up 3.6% over the quarter. There was a 4.9% growth in travel services, which was driven by a rise in the number of arrivals, particularly New Zealanders, the data showed.
The rise in net trade in the quarter is expected to add 0.1 percentage points to GDP growth, the ABS said.