Australia’s trade surplus reached a record $17.7 billion in June on strong shipments of coal, iron ore and grains.
The monthly surplus rose from $15 billion in May, the Australian Bureau of Statistics reported on Thursday.
Exports increased by $2.9 billion (5.1%) and imports increased by $324 million (0.7%).
Commsec chief economist Craig James said the figures marked Australia’s 54th monthly trade surplus.
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“Who cares? They should. Income flowing into Australia is supporting Australian businesses at a critical time when recession fears are being voiced globally,” he said in a note. .
ANZ economists Madeleine Dunk and David Plank said export strength was underpinned by both price and volume, with data showing net exports contributing significantly to gross domestic product in the second quarter. I said yes.
But the country’s surplus will likely peak and begin to decline, they added.
China, Australia’s biggest buyer, is trying to limit its dependence on coal imports and reduce steel production.
James noted that Australia’s exports to China of $170.5 billion in the 12 months to June were well below the record of $179.5 billion set for the year to November 2021. did.
In contrast, Australia’s trade with India has surged, with exports up 108% and imports up 63.5% over the year.
“Exports to India are more important than the US and UK combined,” James said.
Iron ore exports rose 5.5% to $15.5 billion, with significant increases in shipments to China, Vietnam and Taiwan.
Coal exports fell 0.6% to $14.35 billion as coal prices softened from record highs.
Agricultural exports increased by 11.8% due to strong increases in meat and cereals.
Gold exports grew 63.8% following a 71% increase in May. The rise was only partially explained by higher commodity prices.
ABS also noted that lithium exports reached a record $1.1 billion in June, a staggering 1189% increase from a year earlier.
Nearly all Australian lithium is produced in Washington state, with 94% of all exports to China this year.
Lithium is a key component of rechargeable batteries used in consumer devices and renewable energy storage, as well as the electric vehicle industry.
Commodity exports continue to grow and are expected to bring in $9.4 billion to the Australian economy by 2023/24, according to ABS.
Trade surplus hit record $17.7 billion in June
Source link Trade surplus hit record $17.7 billion in June