Federal Treasurer Wayne Swan says figures released on Tuesday underline the importance of the government's efforts to stimulate the economy.
The current account deficit blew out to a seasonally-adjusted $13.35 billion in the three months to June, and will take 0.2 percentage points from GDP, the Australian Bureau of Statistics says.
Economists' forecasts had centred on a small contribution to GDP with the deficit widening $10.7 billion, from a now-revised-to $6.35 billion shortfall for the three months to March.
Prior to this report, and Monday's weak quarterly business data, economists had been forecasting 0.7 per cent GDP growth for the June quarter when the national accounts are released on Wednesday.
"This is a timely reminder of the dramatic impact of the global recession on the Australian economy," Mr Swan told reporters.
The 15.8 per cent fall in total export prices was the largest fall in the 50-year history of the data series, he said.
Federal Opposition Leader Malcolm Turnbull has called for billions of dollars in stimulus to be wound back amid signs of improved economic conditions.
However, Mr Swan said withdrawing the stimulus would be a recipe for a significant rise in unemployment.
"These figures again today underscore the importance of economic stimulus and why calls from Mr Turnbull to withdraw the stimulus now are so wrong," he said.
Mr Swan said the government remained hopeful the national accounts figures would be positive.
"But what we do know, and what these figures absolutely underscore, is the importance of keeping in place our economic stimulus.
The various measures contained in the stimulus had made Australia a more optimistic place, but there was no room for complacency in the global economic environment.
To withdraw the stimulus as Mr Turnbull and opposition treasury spokesman Joe Hockey had called for would "kneecap the recovery and cost tens of thousands of jobs".
There were some positive signs for the economy on Tuesday with building approvals data suggesting home building will be supportive for economic growth in coming quarters.
The ABS said approvals for private homes rose for a seventh straight month, rising by a seasonally-adjusted 1.5 per cent in July.
Demand for new homes has been supported by low mortgage rates and a more generous first home-owner's grant.
Overall building approvals rose 7.7 per cent, compared with economists' expectations for a 3.3 per cent increase.
Private other dwelling approvals - flats and townhouses - remained volatile, jumping a further 35.3 per cent in July after surging 30.9 per cent in June and slumping 44.2 per cent in May.
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