Australia posts surprise trade surplus as commodity exports gain

AUSTRALIA unexpectedly recorded a trade surplus in June as the value of exports — underpinned by commodities — jumped the most in four years while imports dropped. 

Exports advanced 9.6 per cent from May while imports slid 0.2 per cent for a trade windfall of A$1.93 billion (US$1.4 billion), data from the Australian Bureau of Statistics showed on Thursday (Aug 6).

Economists had forecast a A$1.08 billion shortfall following on from May’s surprise deficit.

The rise in exports included a 6.2 per cent monthly increase in metal ores and minerals that includes iron ore, and a 4.6 per cent gain in coal, coke and briquettes, the data showed.

Despite the bounce back to surplus, Australia’s trade position is broadly deteriorating as a multi-decade commodity export bonanza winds down.

Imports are also climbing in response to a surge in data centre construction, while fuel imports also increased due to the war in Iran. BLOOMBERG