Exports increase, trade deficit drops
The latest figures from the Australian Bureau of Statistics showed a surprising jump in manufactured exports, which has led to a lower-than-expected trade deficit for June.
The seasonally adjusted deficit sat at $441 million for June, far lower than the $800 million deficit predicted. Exports contributed two percent more to the balance sheet than in May, while imports remained steady.
However, Australia’s terms of trade showed signs of weakening, which may affect our overall trade position in the current quarter. Major export commodities such as iron ore and coal have dropped in price.
Federal Treasurer Wayne Swan warned that lower terms of trade would have a negative impact on the economy: “There are still very substantial challenges out there in the global economy.”
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