Australia's current account deficit widened massively in the second quarter of 2009 as the impact of sharp cuts to iron ore and coal export prices with Asian buyers lashed the trade accounts.
Australia's current account deficit widened to a seasonally adjusted $13.35bn in the second quarter of 2009 from the first quarter, the bureau said. Economists had expected a current account deficit of $10.6bn in the quarter.
The first quarter deficit was revised to $6.35bn from the $4.61bn initially reported.
Australian coal export contract prices in 2009-10 (April-March) were slashed by around 70% while iron ore contracts for the same period were cut by around 30%. Despite the price cuts, Australia's exports prices still remain above long-term averages.