A record $13.6 billion trade surplus driven by higher iron ore prices, has narrowed the current account deficit to just $2.9 billion in the March quarter, the lowest percentage of GDP since 1979.

Several economists upgraded their GDP forecasts following the strong net exports data as well as higher inventories earlier this week and a slight increase in government expenditure figures also released on Tuesday.

The current account deficit narrowed from $7.2 billion in the first quarter, largely due to surging net exports, which will add 0.2 percentage points to first quarter gross domestic product figures, again in line with market expectations.

Figures released by the Australian Bureau of Statistics showed exports of goods and services rose $4.24 billion, up 4 per cent, and imports of goods and services fell $514 million.

"Iron ore is a significant part of the story owing to domestic factors and broader global supply interruptions pushing prices up," ABS chief economist Bruce Hockman said.

While iron ore volumes were lower, prices were higher and ANZ forecast that iron ore volumes would rebound in the second and third quarters of this year.