Media Release
9 December, 2009
Trade balance another reminder Australia is not immune
Today’s trade figures for October 2009 show the continuing effects of the global recession, with falls in exports causing a rise in the trade deficit for the month.
Australia recorded a trade deficit of $2.4 billion in October 2009, an increase of 29 per cent ($534 million) on the revised deficit in September 2009 of $1.8 billion.
Trade Minister Simon Crean said it was a sign of the ongoing impact of the global recession.
This is another reminder that Australia is not immune from the global economic downturn. But Australia has still weathered the economic storm better than almost any other advanced economy.
Trade has been a victim of the global recession it has not been the cause, that is why we need to push on with the Doha negotiations to stimulate the global economy without cost to national Budgets.
Figures released earlier this week confirmed Australia had the highest growth in trade volumes in 2008-09. This was against a 9 per cent fall in the OECD average for trade volumes over the same period.
The Australian services sector continues to hold up against the economic downturn with services exports rising 1 per cent to $4.7 billion driven by growth in manufacturing services.
Merchandise exports continue to grow in key markets such as Japan (up 6 per cent) India (up 8 per cent) and ASEAN (up 5 per cent).
The increase in the October deficit was driven by a 5 per cent fall in goods exports for the month, which outweighed the 1 per cent decrease in imports of goods and services for the month.
Encouragingly services exports continued their recent improvement, rising 1 per cent to $4.7 billion. In the 12 months to October, services exports have increased 4.1 per cent in original terms.
Media Inquiries:
Mr Crean’s Office: 02 6277 7420
Departmental : 02 6261 1555