Australia records improved trade deficit over August


Australia recorded a trade deficit of $1.5 billion in August, a decrease of $259 million on a revised July trade deficit of $1.8 billion

October 7, 2009

Australia recorded a trade deficit of $1.5 billion in August, a decrease of $259 million on a revised July trade deficit of $1.8 billion.

Minister for Trade Simon Crean says this reduction reflects a decline in imports of goods and services for the month, with imports of consumption, intermediate and other merchandise goods all falling.

"Encouragingly, the export of manufactured goods increased by 2.8 percent to $3.2 billion, which is a positive development given the challenges arising from an appreciating dollar," he says.

Services exports also continued to improve, rising by 0.6 percent to $4.5 billion in August.

Over the past five years, Australia’s services exports have recorded an average growth rate of 7.8 percent.

"Recovery in global services trade will be an important contributor to the broader economic recovery and this will be a key focus of a Global Services Summit that I will be attending in Washington next week," Crean says.

According to Australian Bureau of Statistics data, goods and services credits fell by $357 million in seasonally adjusted terms over August.

Non-rural goods fell by $248 million (3 percent) with the coal, coke and briquettes component down by $248 million (8 percent).

Rural goods fell by $62 million (3 percent) and non-monetary gold fell by $6 million (1 percent), while services credits rose by $29 million (1 percent).

In the 12 months to August 2009, Australia’s exports to China (up 37 percent), Korea (up 28.7 percent) and to Japan (up 28.6 percent) all increased significantly.

Goods and services debits fell $615 million to $20.8 billion, with intermediate and other merchandise goods falling by 10 percent and fuels and lubricants down by 24 percent.

However, these falls were partly offset by rises in non-monetary gold, up by $300 million (118 percent), capital goods, up by $83 million (2 percent) and services debits, up by $35 million (1 percent).

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