Australia's Exports on Track for Record High

Australia's exports are on track to reach a record high in 2005, Deputy Prime Minister and Minister for Trade Mark Vaile said today following the release of the ABS October International Trade in Goods and Services figures.

Mr Vaile said exports for the 10 months to October were 13.9 per cent higher than a year earlier.

"Strong resources prices have stimulated growth in resources export sectors and with resources firms investing to raise capacity, and robust growth in other sectors, the outlook for exports remains positive," Mr Vaile said.

"Australia's exports in October reached $15 billion, the second highest level on record and the highest recorded value for October. The rise was two per cent higher than exports in September 2005."

Non-rural and other goods exports drove growth in the quarter, which rose three per cent, or $333 million, to $9.9 billion. Strong growth was recorded in exports of mineral fuels with coal exports up two per cent and other mineral fuels up 14 per cent. Strong increases were also recorded in gold exports (up 13 per cent) metal ores and minerals (up four per cent) and other manufactures (up eight per cent).

.Rural goods exports rose one per cent or $20 million to $2 billion in October. Exports of cereal grains and preparations grew strongly to rise 11 per cent or $38 million. Services exports fell slightly in October, by one per cent or $22 million, mainly due to a fall in travel services exports.

"October saw strong growth in merchandise exports to North Asia with exports to China (up 46 per cent), Korea (up 41 per cent) and Japan (up 29 per cent) increasing significantly on October 2004 figures," Mr Vaile said.

"The Federal Government is removing restrictions on businesses, investing in export infrastructure, and pursuing the most ambitious trade agenda in Australia's history. These measures will continue to open up growth opportunities for our exporters."

Imports rose slightly in October, by $99 million or one per cent. Strong growth was recorded in capital goods imports, which rose $197 million or seven per cent mainly due to the importation of civil aircraft. Consumption goods imports fell by two per cent.

The strong growth in exports led to the trade deficit contracting in October to $1.3 billion from $1.6 billion in September.

Contacts: Richard Forbes 02 6277 7420