Australia posted a trade surplus of A$12.24 billion in December, impacted by exports of mineral fuels and mining goods impacted by the war in Ukraine. The Australian Bureau of Statistics reported imports had risen by $445 million from November, driven by an increase in travel services as more Australians headed overseas for the holidays. Exports fell by $793 million. The report was amid softening global demand as China battled with a resurgence of coronavirus infections. When China slows down, Australian mining companies are more likely to see a slowdown in exports from Australia.
Australia’s’ rural goods exports were down $250 million, following a drop in cereal grains and cereal preparations. Exports of metal ores, coal and mineral fuels also shrank, driven by a mix of weakening overseas demand and low local production volumes due to the holiday season.
Key statistics
- The seasonally adjusted balance on goods and services surplus fell to a surplus of A$12.24 billion from A$13.20 billion in the prior month. Expectations were for a trade surplus of A$12.50 billion.
- Goods and services debits (imports) grew 1% during December to A$45.60 billion with increased demand for travel services. Increased imports of capital goods and demand for leisure goods imports.
- Goods and services credits (exports) fell 1% in December to A$57.84 billion, driven largely by a decline in metal shipments, which dropped 15.4% from the prior month. Exports of metal ores, coal and mineral fuels also shrank, driven by a mix of weakening overseas demand and low local production volumes due to the holiday season.
- For the 2022 full year, the trade surplus widened to AUD 139.50 billion from AUD 118.72 billion in 2021. Australia has posted monthly trade windfalls for 4-1/2 years, buoyed by robust sales of iron ore and natural gas.
Source: ABS
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From The TradersCommunity Australian News Desk