Exports Hit Record High

"Australia recorded its highest monthly export figure on record in February and the lowest trade deficit since July 2002," Deputy Prime Minister and Minister for Trade Mark Vaile said today.

The ABS February International Trade in Goods and Services figures show exports grew by 10 per cent or $1.5 billion to reach $16.8 billion. Strong growth in exports and a fall in imports saw the trade deficit fall by $1.9 billion to $595 million in February.

Strong growth of 21 per cent was recorded in resources exports, which rose to $6.1 billion in February, following a temporary fall in January. Exports of minerals and resources are subject to volatility, in part reflecting disruptions in shipping schedules and temporary mine closures in Northern Australia during the cyclone season.

Mr Vaile said the stronger figure for February reflected a correction on the unexpected figures in January.

Manufacturing exports rose 8.5 per cent to $3.4 billion in February continuing their strong performance. Services exports rose by $7 million to $3.3 billion and rural exports fell by 2 per cent to $2.1 billion.

Imports fell 2 per cent ($406 million) to $17.4 billion in February 2006. Falls were recorded in all categories except intermediate goods, which rose 5 per cent mainly due to higher imports of petroleum products.

Merchandise exports (in original terms) in the year to February were up 30 per cent to North Asian trading partners, with a 46 per cent increase in exports to China.

"The figures are timely given the visit of Chinese Premier Wen Jiabao and illustrate the extent of and strong growth in the trading relationship between our two countries.

"Exports are on track to achieve record highs in the 2005-06 financial year. In the eight months to February 2006 exports are up 16 per cent compared to the same period in 2004-05."

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

Contact: Mr Vaile's Office 02 6277 7420, Departmental 02 6261 1555