CANBERRA: Australia’s trade surplus narrowed unexpectedly January, as imports rose and exports declined. After seasonal adjustments, Canberra’s trade surplus stood at A$1.3 billion in January, down from a revised $3.3 billion the prior month, the national statistics bureau reported Thursday. Economists in a median estimate forecast the surplus to expand to $2.2 billion. Economists in a median estimate called for a surplus of $3.82 billion.
Exports declined at a seasonally adjusted 3% in January, after rising 5% the previous month. On the other side of the ledger, imports rose 4%, following a slight increase in December. Trade was a positive contributor to economic growth in the fourth quarter, with exports advancing 2.2% during the period. Exports added half a percentage point to growth. Imports, meanwhile, gained 1.4% on the quarter and subtracted 0.3 percentage point from growth.
Australia’s gross domestic product (GDP) accelerated 1.1% from the prior quarter, topping the vast majority of estimates. Compared to a year earlier, the economy expanded 2.4%. Fourth-quarter growth ensured Australia avoided a technical recession after the economy contracted by 0.5% in July-September. The Reserve Bank of Australia (RBA) commented that the third quarter decline reflected temporary forces. Central bankers voted to leave the cash rate at 1.5% last month. The Australian dollar was down sharply against its U.S. counterpart Thursday. The Aussie last traded at 0.7645 U.S., down 0.4%.
