Australia's Exports at a Record High

Australia's exports in 2004-05 reached their highest level ever recorded, $162.3 billion, an increase of 13 per cent on 2003-04, the Deputy Prime Minister and Minister for Trade, Mark Vaile, said today.

Mr Vaile's comments followed the release of the ABS June International Trade in Goods and Services figures.

"Strong growth was recorded in all export sectors in 2004-05, particularly in Australia's resource exports, which rose by 38 per cent to a record high of $48 billion. Australia's coal exports increased by over $6 billion, or 55 per cent, and metal ores and mineral exports increased by over $5 billion, or 33 per cent," Mr Vaile said.

"The broad distribution of growth across export sectors indicates Australian exporters have responded positively to the challenges of recent years, including the higher Australian dollar and increased international competition."

Rural exports rose 4.5 per cent to $26 billion in 2004-05. Particularly strong growth was recorded in meat and meat preparations, which rose by 21 per cent.

Services exports rose 3 per cent to a new record of $35 billion in 2004-05. Services exports were driven by growth in transportation and travel exports.

Manufactured exports recovered in 2004-05, growing 6.5 per cent on the previous year to $35 billion. Metals and machinery exports were the strongest contributors to this growth.

Growth was driven by increased exports to East Asia, in many instances stemming from the growth in China's economy. Strong demand for energy and steel has seen commodity prices increase by 14 per cent in 2004-05. Coal exports increased by more than $6 billion (55 per cent) in 2004-05. Metal ores and minerals exports increased by almost $5 billion (33 per cent), and other mineral fuels exports increased by more than $2 billion (27 per cent).

Imports grew 12 per cent in 2004-05, driven by strong growth in the cost of importing petroleum (due to high oil prices) and by imports of capital equipment as Australian businesses invest in expanding production. Consequently, the trade deficit rose in 2004-05 to $25.5 billion. The deficit is expected to moderate over the next year, reflecting increased export volumes and high commodity prices.

"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.

Contacts: (Minister Vaile) 02 6277 7420 - DFAT Media Liaison 02 6261 1555