Exports on Track for Record Financial Year

“Australia’s exports achieved their highest May level on record in 2006, reaching $16.5 billion”, Acting Minister for Trade, Warren Truss, said today. Mr Truss was commenting on the release of the ABS May 2006 International Trade in Goods and Services figures.

“Exports remained strong in May, despite some moderation from the level achieved in April. This reflected, in part, the diversion of crude oil production to the domestic market and a return to more normal levels of LNG exports after a surge in April following the cyclones that battered Australia’s north in the first quarter of 2006. Exports of non-monetary gold were also down due to volatility in the monthly pattern of exports.

“Australia’s exports are on track to reach a record high for the 2005-06 financial year,” Mr Truss said.

Australia’s exports grew by 16 per cent in the 11 months to May 2006 and have already exceeded the total level of exports in 2004-05 by $9.4 billion, according to the ABS figures released today.

Mr Truss said demand for Australian exports from overseas trading partners remains strong. Merchandise exports in the 11 months to May were up 25 per cent to North Asian trading partners, with a 38 per cent increase in exports to China and a 24 per cent increase in exports to Japan.

“Exports to ASEAN, the EU, India, and the US have also shown solid growth in the financial year to date.

“Australia’s imports increased in May, due mainly to more expensive oil imports and increased capital imports as resources exporters invest to expand capacity. As a result, the trade deficit widened to $2.3 billion in May.

“The Australian Government continues to implement reforms to improve the international competitiveness of Australian businesses. The Government is investing heavily to expand export infrastructure, and we are pursuing the most ambitious trade agenda in Australia's history. These measures will continue to open up growth opportunities for our exporters,” Mr Truss said.

Contact: Mr Vaile's Office 02 6277 7420, Departmental 02 6261 1555 or Kylie Butler – Media Adviser 02 6277 7680