Export slump sees trade deficit soar
Australia’s trade balance has slipped further into the red as exports declined by three percent in October. Imports haven’t fared much better, slumping by one percent over the same period.
The Australian Bureau of Statistics’ seasonally adjusted figures show a deficit of $2.38 billion for the month, a large increase from last month’s $1.85 billion deficit, and also much higher than the $1.7 billion deficit economists had predicted
The worse than expected result was driven by a steep three percent decline in exports, from about $20.2 billion in September to $19.5 billion in October.
Imports also fell, but only by around one percent (approximately $150 million), which was not enough to offset the export slump.
The fall in exports was largely driven by a 12 percent fall in the value of coal exports, a seven percent slide in metal ores and minerals, a 17 percent slide in gold and an eight percent decline in rural goods.
Both the price and volume of key metallurgical coal fell, while the volume of iron ore exports increased slightly but prices tumbled nine percent.
The main offsetting decline in imports was a 10 percent fall in the value of fuel and lubricant imports.
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