Australia's Exports to Asia Surge

The May 2004 International Trade in Goods and Services data shows a continued strengthening of Australian exports, Trade Minister Mark Vaile said today.

"Exports rose for the third consecutive month in May, with the trend estimate of goods and services increasing for the tenth successive month," Mr Vaile said.

"Highlighting the strong export performance was a surge in demand from North Asia for Australian minerals and fuels, which are used to power their ongoing industrial development."

In seasonally adjusted terms, year-on-year, exports to North Asia grew 19 per cent - reflecting strong growth in exports to China, up 32 per cent and Japan, up 15 per cent.

Exports to ASEAN were also very strong, up 40 per cent year-on-year.

"The strong domestic economy has also seen an increase in imports in May, rising by three per cent," Mr Vaile said.

"In seasonally adjusted terms the deficit of goods and services trade was steady in May at $1.84 billion.

"Exports grew by three per cent in May on the back of a strong performance in exports of Australia's major commodities, including meat, wool, metal ores and coal."

Non-rural goods rose three per cent, driven by gains in metal ores and minerals, up 19 per cent and coal, coke and briquettes, up 12 per cent. Other manufactures were up 14 per cent in May.

Despite the drought continuing to affect large parts of Australia, Mr Vaile also stated that growth in exports of rural goods had been robust, rising in seasonally adjusted terms by 11 per cent in May. Other rural goods rose 28 per cent in May, while meat and meat preparations were up 27 per cent. Wool and sheepskins also performed strongly, up 12 per cent in May.

"Exports are set to continue to grow in coming months, with demand from our key trading partners likely to continue to grow through 2004," Mr Vaile said.

Contact: Matthew Doman (Ministerial) on 02 6277 7420