Record Exports in July as Trade Deficit Falls

A strong rise in exports in July and a corresponding fall in imports saw Australia’s trade deficit narrow significantly to $756 million, the Australian Government Minister for Trade, Warren Truss, said today.

Exports of $18.4 billion last month were up two percent on June and were also a record for any July. The trade deficit fell by $981 million to $756 million, with imports down by three percent.

Growth was strongest in manufactured and rural exports. Manufactured exports were up by 13 percent to almost $4 billion, with exports of metals (particularly aluminium, zinc and lead) and transport equipment up by almost 30 percent.

Rural exports increased by 3 percent to $1.9 billion, led by cereals which rose by 57 percent on higher volumes. This is the highest level of cereal exports since October 2006, and a sign of some improvement in the drought-hit sector.

Coal exports fell by six percent, with export volumes particularly affected by restricted operations at Queensland coal loading terminals.

Mr Truss said that North Asia remained a strongly growing market, with goods exports rising by 10 percent and exports to China up 24 percent up over the past 12 months. Goods exports to India also continued to grow rapidly, increasing by 35 percent in the 12 months to July.

In the calendar year to date, both exports and imports are up by six percent.

In figures released yesterday for 2006-07, the trade deficit fell by $2.5 billion to $12 billion, with exports up by 10 percent over the year.

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