Current account deficit hits record high

Australia's current account deficit grew by 2.9 per cent in the June quarter to a record high of almost $16 billion. The trade deficit increased by 7 per cent to $3.8 billion and net income deficit was up 2 per cent to $12.1 billion. The drought continues to impact rural export volumes which were 1.7 per cent lower in the quarter, while the strong dollar pushed manufacturing exports down 0.5 per cent. The trade deficit was estimated to take 0.1 per cent from the nation's GDP in the quarter.