Media release from Senator Robert Hill, Acting Trade Minister
Monday 2 February 2004 - 21/2004
Rural Exports Rise in December Despite Challenging Trading Climate
The December 2003 International Trade in Goods and Services data show a welcome rise in rural exports, acting Minister for Trade Robert Hill said today.
In seasonally adjusted terms, rural exports rose by $101 million (a strong 6 per cent).
Senator Hill said the main contributors to the rise in rural exports, in original terms, were exports of cereals, up $147 million (or 53 per cent), driven by higher volumes of barley and wheat exports.
"While the drought continues to impact on rural goods exports, improved weather conditions are likely to see rural export volumes substantially improve in 2003-04 as grain exports, in particular, recover,"Senator Hill said.
Today's release of the December International Trade in Goods and Services confirms that Australia's exporters continue to face a challenging trading climate.
The December 2003 balance on trade in goods and services was a deficit, seasonally adjusted, of $2,554 million.
In the month of December 2003, total goods and services exports, in seasonally adjusted terms, fell by $190 million (or 2 per cent), to $11,485 million.
"However, the trend value of total exports improved, for the fifth successive month, as did the trend value of rural exports, despite the substantial appreciation of the Australian dollar,"Senator Hill said.
"The trend value of services exports reached another record level, and has risen for seven consecutive months, assisted by the impact of the Rugby World Cup in October and November. Tourism arrivals were at their equal third highest level ever in December.
"In the past 12 months exporters have had to adapt to a higher Australian dollar, severe drought, an outbreak of SARS and an uncertain global environment.
"Nevertheless, today's ITGS release shows that they are responding.
"This confidence is confirmed by organisations such as the OECD, which in its most recent Economic Outlook noted that with the global recovery underway and the drought likely to break, Australia's export volumes would rise by 7.1 per cent in 2004 and 9.1 per cent in 2005. Total Australian exports for 2003 were $141.0 billion."
The strength of imports is being driven by the strength of the domestic economy. Imports of capital goods rose a further 6 per cent in December, reflecting high levels of investment and business confidence. Total Australian imports for 2003 were 164.9 billion.