Aussie devaluation fails Economics 101 as export income slides

Sydney

IT'S one of the first rules of economics: make a product cheaper, and people will buy more. Things aren't playing out that way Down Under.

A 34 per cent fall in the value of the Aussie dollar to a six-year low of about 72 US cents has done little to revive exports, which now cost less for international buyers. Australia posted its widest-ever trade deficit in April. Analysts predict four-fifths of the nation's biggest listed exporters will report shrinking revenues this year, data compiled by Bloomberg show.