Media Release

Friday, 31 January 2003 - MVT06/2003

Aircraft Purchases Signal Investor Confidence in the Australian Economy

The December 2002 International Trade in Goods and Services data released today signals investor confidence in the future growth of the Australian economy, Trade Minister Mark Vaile said today.

Signalling the confidence of investors in the Australian tourism and services sector, imports of capital goods increased $1379 million for the month of December, with the purchase of four new civil aircraft by Qantas, worth approximately $1.3 billion, dominating the increase.

"Two new Boeing 747-400's will improve services and cater for growing demand on United States routes. Two new Airbus A330-200's will improve services on domestic routes," Mr Vaile said.

"The purchase reflects the success and stability of the Australian airline industry during what is a very challenging time for the global aviation sector. It also reflects the confidence of investors in the continued growth of Australian tourism and service sectors.

"The December 2002 balance on goods and services was a deficit of $2995 million in seasonally adjusted terms. While this is the largest deficit on record, the majority of the increase reflects the impact of aircraft imports and the effect of the drought on rural exports.

"Exports of rural goods fell by $217 million in December demonstrating that we are now starting to see the drought increasingly affect our rural exports."

Demonstrating the resilience of the Australian economy, exports over the year to December were 2 per cent higher than in December 2001, in spite of the difficult global trading environment. Total exports to East Asia also remain firm and are up 2 per cent over the year to December.

"Exports to China, Japan and the European Union remain strong, rising 23 per cent, 7 per cent and 27 per cent respectively over the year to December 2002," Mr Vaile said.

Media Contact: Robyn Bain +61 02 6277 7420