A FALL in exports of bulk minerals has contributed to Australia recording its first trade deficit since December 2017, analysts from the Australia Bureau of Statistics report.
For those in need of a refresh, a trade deficit is where the value of a country's imports is greater than its exports, impacting its economic balance.
The current account balance fell to a deficit of $27.1 billion in the March quarter 2026, according to ABS data released this week.
ABS head of international statistic Jonathon Khoo said “trade in goods and services fell into a deficit for the first time since December quarter 2017, with exports of mining commodities falling and imports of data centre equipment and fuels rising”.
“The current account balance fell for the fourth quarter in a row,” Mr Khoo said.
“As a share of nominal GDP, the current account deficit is expected to be the largest since June 2016.”
According to the ABS, exports of goods and services fell 1.2% in the March quarter, led by a 1.2% fall in goods, while iron ore and coal led the fall in exports of mining commodities.
“Iron ore prices fell strongly, while both iron ore and coal exports were disrupted by cyclones Koji and Mitchell,” Mr Khoo said.
Exports of services were reported as falling 1.3%.
Imports of goods and services rose 0.8%, led by a 1.5% rise in goods, with automatic data processing equipment and fuels and lubricants leading the rise.
“ADP equipment imports reached historic highs, led by bulk imports of AI server racks amid continued data centre infrastructure investment in New South Wales and Victoria,” Mr Khoo said.
“Crude oil and refined petroleum product prices rose significantly as the closure of the Strait of Hormuz lifted oil prices and tightened global supply.”
Meanwhile non-monetary gold exports and imports both rose, up 23.7% and 12.9% respectively.
Gold prices continued to reach historic highs, with the tenth straight quarterly rise across both exports and imports.
"Foreign owned mining companies in Australia saw higher profits this quarter due to price rises in gold and profits paid back to foreign owners and shareholders." Mr Khoo said.
The ABS has predicted the $5.2bn fall in net trade will detract 0.8 percentage points from the March quarter 2026 gross domestic product (GDP).