Media Release
Monday, 30 June 2003 - MVT50/2003
Exports Grow Despite Challenging Global Market
The May 2003 International Trade in Goods and Services data released today show an improvement in Australia’s trade position, with strong growth in non-rural exports being tempered by the ongoing impact of the drought on rural exports and SARS on services exports, Trade Minister Mark Vaile said.
“Our exporters are still facing challenging times with slow growth in the economies of our key trading partners, so the rise in exports of $240 million during May is good news,” Mr Vaile said.
The May 2003 balance on goods and services was a deficit of $1.9 billion in seasonally adjusted terms, a reduction of $1.1 billion on the deficit recorded in April 2003.
Exports of transport equipment were strong in May, with an increase in original terms in road transport equipment (up $59 million). The export of two passenger ferries worth $50 million by Austal Ships to Bora Bora Cruises in Tahiti contributed to a rise in other transport equipment of $111 million.
Due to the continuing impact of the drought, rural goods exports fell by $68 million or 3.7 per cent in May 2003 in seasonally adjusted terms and are now at their lowest level since June 1999.
“The drought continues to have devastating impact on the export incomes of our farmers,” Mr Vaile said. “SARS has compounded these difficulties, particularly for wool growers whose biggest export market is China.”
The fall in rural goods exports was mainly driven by lower wool and sheepskin exports which fell by $67 million and a fall in meat and meat preparation exports of $14 million. Partially offsetting this was a rise in the exports of cereals and cereal grains which grew by $48 million, mainly reflecting an $87 million rise in wheat exports.
“The rise in wheat exports is heartening as our wheat farmers have suffered considerably as a result of the worst drought in 100 years,” Mr Vaile said.
The OECD has noted that Australia's trade and current account deficits are not a cause for concern as they have been in the past because structural reforms to the economy have ensured that '...private sector saving and investment decisions are likely to be efficient'.
Contact: Matthew Doman 02 6277 7420