Cyclones affect trade figures, but manufactures perform strongly

Cyclone activity in Western Australia affected shipping of iron ore in March, driving down exports by 20 percent or $639 million, the Australian Government Minister for Trade, Warren Truss, said today.

As a consequence of the weather, Australia’s trade deficit increased to $1.6 billion in March, up $894 million on February. It is expected that iron ore shipments will return to normal in the following months.

Mr Truss said exports totalling $17.8 billion made it the highest levels of exports for a March on record.

Exports increased in most sectors – manufactured exports were up by 2 percent to $3.9 billion, rural exports rose slightly to $2.1 billion and services exports were up to $3.9 billion.

In the financial year to date, exports are up 12 percent compared to the same period in 2005-06. Leading the charge are manufactured exports, up by 14 percent.

Imports are up by 10 percent over the period, but stronger export growth has seen the trade deficit for the nine months to March fall to $8.7 billion from the $11.3 billion recorded in the same period to March 2006.

Merchandise exports to North Asia – our largest export region – continue to grow strongly, and are up by 14 percent over the past 12 months. Exports to the European Union are strong, up by 21 percent over the same period

Media Inquiries: Minister Truss' office 02 6277 7420 - Departmental Media Liaison 02 6261 1555