Another Record Month for Exports

Australia’s exports grew by two per cent to reach $14.7 billion in May, achieving a new record high for the second consecutive month, Trade Minister Mark Vaile said today.

“Exports are firmly on track to reach record levels in both value and volume terms in 2004-05. In the 11 months to May 2005, exports totalled $148 billion, up 13.6 per cent compared to the eleven months to May 2004,” Mr Vaile said.

Commenting on the release by the ABS of the May International trade in Goods and Services figures, Mr Vaile said export growth was driven by higher exports of non-monetary gold, and continued growth in coal exports (up five per cent) following the introduction of higher contract prices in April. Other mineral fuels also displayed robust growth.

Rural exports rose $8 million in May. Growth in meat and meat preparations and other rural exports led the way. Some manufactured goods exports recorded sizable increases in May, including road vehicles and medicinal and pharmaceutical products. Services exports rose one per cent, driven by growth in travel and other services.

Merchandise exports to East Asian markets have grown exceptionally strongly in 2004-05. Over the 11 months to May 2005, merchandise exports to China have grown 31 per cent, to Japan 26 per cent, to Thailand 61 per cent and to India 22 per cent. There has also been solid growth in merchandise exports to other major markets, including the United States, the European Union and New Zealand.

Imports rose by two per cent in May, in part due to higher imports of refined petroleum. Business purchases of imported machinery and industrial equipment also grew strongly.

The trade deficit declined slightly in seasonally adjusted terms in May. This follows the large reduction in April were it fell by around $A1 billion.

“The Government’s active agenda to open markets, promote Australia’s exports overseas, and ensure infrastructure is in place to enable exports to keep growing is providing a firm foundation for future increases in exports and the growth of the Australian economy,” Mr Vaile said.

Contact: Mr Vaile's office 02 6277 7420 - DFAT Media Liaison 02 6261 1555