Australia’s trade surplus beats estimates as imports tumble
AUSTRALIA’S monthly trade surplus widened in June as iron-ore shipments gained while overall exports slid less than imports.
The windfall was A$11.3 billion (S$9.91 billion), compared with estimates for a A$10.75 billion gain and a downwardly revised A$10.5 billion in May, Australian Bureau of Statistics data showed on Thursday (Aug 3). Overall exports slid 2 per cent, while imports dropped 4 per cent in the month.
Thursday’s data showed metal ores and minerals, which includes iron ore, climbed 2.3 per cent, while coal, coke and briquettes fell 6.5 per cent, the data showed. Other mineral fuels, which includes liquefied natural gas, declined by 8.9 per cent.
Australia has posted monthly trade surpluses since January 2018, underpinned by sales of iron ore and natural gas to the rising economies of the Asia-Pacific region. The export windfall will see the budget return to an annual surplus for the first time in 15 years.
Demand for Australian goods has been driven by top trading partner China with its strong appetite for iron ore and coal. Trade in some other commodities such as timber resumed recently after ties thawed between Beijing and Canberra following a political dispute.
Travel exports climbed 2.9 per cent as a rebound in inbound tourism and international student arrivals that began earlier this year continued.
Tourism related services imports soared 10.2 per cent from a month earlier, as Australians headed abroad, particularly to Europe for the summer. BLOOMBERG
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