Australia's Exports Continue to Strengthen

The April 2004 International Trade in Goods and Services data shows a continued strengthening in Australia's exports, Trade Minister Mark Vaile said today.

"Total exports have increased six per cent on the back of strong growth in a number of Australia's major commodities – gold, coal and wheat," Mr Vaile said.

The trend estimate for exports of goods and services increased for the ninth successive month rising by one per cent in April.

"Because of the ongoing strength in the Australian economy, imports rose four per cent in March," Mr Vaile said.

"Imports of capital goods rose by four per cent in seasonally adjusted terms demonstrating that Australian companies are continuing to invest in the future.

"The increase in exports was driven by a strong rebound in rural goods with cereal exports soaring by 30 per cent, on the back of the record 2003-04 winter crop."

Following a record wheat harvest in 2003-04 of 25 million tonnes, the AWB is expecting another large wheat crop of 21 to 24 million tonnes in 2004-05.

Mr Vaile said there was also strong growth in exports of other key rural and energy commodities, including dairy, fish and gas.

"Strong growth in volumes saw exports of gold increase by 43 per cent and coal exports rise by 20 per cent," Mr Vaile said.

Robust demand for Australia's exports was broadly based. In original terms, e xports to India increased by 47 per cent, exports to the US were up by six per cent, while exports to the European Union increased by five per cent. Also, exports to Japan rose by four per cent.

"This diversification reflects strong global demand as prospects for the world economy continue to strengthen," Mr Vaile said.

"Exports are set to continue to grow in coming months with the easing of the drought and strong growth expected in the global economy and Australia's trading partners, through 2004.

"The April outcome is in line with forecasts of a return to robust export growth in 2004. Budget forecasts are for export volume growth of eight per cent in 2004-05."

Contact: Matthew Doman (ministerial) 02 6277 7420 - Nicole Guihot (departmental) 02 6261 1555