Media Release - Acting Minister for Trade, Senator Kim Carr
2 July, 2009
Australia Records Trade Deficit in May as Global Recession Hits Home
Australia has recorded a seasonally adjusted trade deficit of $556 million in May, a $274 million increase on the revised deficit of $282 million in April.
Acting Minister for Trade Senator Kim Carr said data released by the Australian Bureau of Statistics showed the impact that the deepest global recession since the 1930s was having on the Australian economy.
"This Government has been saying for a long time that Australia is weathering the global recession better than most - but we are not immune."
"Today's figures highlight the need for the Government's measures to cushion the economy and support Australian jobs.
"It underlines the importance of the government's commitment in the May Budget to invest $22 billion in infrastructure. This is supporting jobs now and helping to ensure the economy is ready to take advantage of any recovery," Senator Carr said.
The total value of exports fell 5 per cent in May.
"While it is disappointing to see the value of exports falling, it is an inevitable consequence of the rapid slowdown in the economies of our major trading partners and the large falls in commodity prices that have occurred," Senator Carr said.
The value of coal exports fell by $540 million (15 per cent) in May as the large reductions in coal prices negotiated by Australian miners for the new Japanese financial year came into effect. Exports of goods to Japan fell 13 per cent in May but exports to China continue to grow, up 9 per cent.
Senator Carr said there were other positive signs.
"The pleasing thing about today's figures is that volumes for our resource exports are holding up well. The volume of high-rank metallurgical coal exports rose 17 per cent in May, while semi-soft coking coal rose 6 per cent. The value of metal ore and minerals exports fell by 2 per cent, a strong result given the large falls in contract prices for iron ore that have been announced recently."
"I also welcome the continued growth in the value of our services exports, which rose 1 per cent to a new high of $4.7 billion in May," Senator Carr said.
The value of manufacturing exports fell 3 per cent in May, with exports of transport equipment down $55 million (21 per cent) and metals exports falling $39 million (51 per cent).
Imports fell 4 per cent in May, with imports of capital goods falling $577 million (14 per cent) largely driven by a fall in the value of civil aircraft imports.
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