CANBERRA: Australia’s trade deficit narrowed unexpectedly to a one year low of $2.2 billion in March on the back of a stronger export performance. In seasonally adjusted figures released by the Australian Bureau of Statistics, the deficit narrowed by 29 per cent from the $3 billion deficit recorded in February, which was revised down from $3.4 billion. Over the March quarter, the total deficit came in at $8.1 billion, a decrease of 21 per cent from the $11 billion deficit racked up in the December quarter of 2015.
The total value of exports in March rose 4 per cent to $26.5 billion, while imports edged up just 1 per cent to $28.7 billion. The always-volatile non-monetary gold underpinned the surge with the value of exports jumping 58 per cent – or $659 million – to $1,789 million. As well, the value of iron ore exports was up 8 per cent – or $409 million – and coal exports rose 3 per cent.
The value of iron ore shipments was driven up by a combination of increased volume and prices. The services sector also chipped in with the value of exports up 3 per cent, almost entirely due to a $135 million increase in the value of inbound tourism.
However, the value of rural goods exported fell by 2 per cent – or $85 million – dragged down by a 6 per cent drop in grain shipments. On the import side of the ledger, growth in purchases of both consumption goods – such as food and clothing – and capital goods – including plant and equipment – was fairly weak.
