Australia Posts Largest Trade Surplus on Record


Australia's trade surplus widened sharply to AUD 5.75 billion in May 2019 from a marginally revised of AUD 4.82 billion in the previous month and beating market expectations of a surplus of AUD 5.25 billion. It was the largest trade surplus on record, as exports rose by 4 percent to an all time high of AUD 41.59 billion, while imports advanced at a softer 2 percent to AUD 35.84 billion.

Exports from Australia rose by 4 percent to an all time high of AUD 41.59 billion in May. Sales of non-rural goods grew by 5 percent to AUD 27.51 billion, driven by metal ores and minerals (13 percent), and coal, coke and briquettes (3 percent). Also, sales of rural goods rose 1 percent to AUD 4.08 billion, led by other rural (6 percent), and cereal grains and cereal preparations (17 percent). In addition, sales of non-monetary gold expanded 1 percent to AUD 1.69 billion and exports of services went up 1 percent to AUD 8.30 billion, mainly supported by travel (1 percent). In contrast, net exports of goods under merchanting fell 5 percent to AUD 18 million.

Meanwhile, imports increased 2 percent to AUD 35.84 billion. Purchases of capital goods advanced 5 percent to AUD 7.0 billion, namely civil aircraft and confidentialised items (67 percent), machinery and industrial equipment (5 percent), and telecommunications equipment (6 percent). In addition, imports of intermediate goods and other merchandise goods grew 1 percent to AUD 11.19 billion, mainly driven by fuels and lubricants (8 percent). Also, purchases of non-monetary gold surged 17 percent to AUD 478 million, and that of services went up 1 percent to  AUD 8.34 billion, mostly led by maintenance and repair services n.i.e. (64 percent), and transport (2 percent). Conversely, imports of consumption goods dropped 1 percent to AUD 8.87 billion, mainly due to textiles, clothing and footwear (-7 percent), and non-industrial transport equipment (-3 percent).

Considering the January to May period, the trade surplus soared to AUD 25.70 billion from AUD 5.32 billion in the corresponding period the prior year. 

Australia Posts Largest Trade Surplus on Record


ABS l Rida Husna | rida@tradingeconomics.com
7/3/2019 10:05:19 AM