Media Release
3 September, 2009
Global recession Impacting on Australia’s Trade Performance
The Australian Bureau of Statistics today released figures showing that Australia’s trade deficit increased by $1 billion in July to $1.6 billion.
These figures show that the global recession is continuing to have a substantial adverse impact on Australian exporters and the Australian economy. The value of exports fell 1.4 per cent to $20 billion in July, 26.9 per cent below their peak in October last year. Gold exports fell 27.1 per cent, while exports of cereals fell 16.6 per cent.
Australian exporters continue to face extremely challenging conditions despite some encouraging signs that the world economy is stabilising. Eight of Australia’s top ten trading partners have contracted over the last year. The National Account figures released yesterday show that export income fell $11 billion in the June quarter, the largest quarterly fall on record reflecting significant declines in export prices.
The National Accounts released yesterday showed that Australia was the fastest growing advanced economy over the past year due in large part to the government’s economic stimulus package.
Australia’s exporters are doing it tough because most of our major trading partners are either in recession or have contracted over the last 12 months.
However, the statistics released today show some encouraging signs.
The value of resources increased 2.4 per cent, with iron ore exports increasing by 17 per cent. In volume terms, iron ore exports increased 11.1 per cent to a new monthly record of 32.7 million tonnes.
Manufacturing exports fell 2.8 per cent in July, but exports of transport equipment (mostly motor vehicles) improved, increasing 10 per cent. Rural exports fell 3.6 per cent, while services exports fell 0.9 per cent.
Merchandise exports to China increased 4.6 per cent in July and are up 42.8 per cent in the year to July 2009 (in original terms). Merchandise exports to India fell 9.3 per cent in July, but India is still Australia’s fastest growing major merchandise export market, with the value of merchandise exports over the last 12 months increasing 63.3 per cent.
Australia’s strong export growth to China and India over the past 12 months highlights the importance of continuing to engage and broaden our commercial relationships with these two countries as they will continue to be two of the key drivers of global economic recovery.
The value of imports in July rose by 3.5 per cent, driven largely by a 20.9 per cent increase in fuel imports and a 5 per cent rise in imports of capital goods. This import growth is also indicative of the improving Australian economy.
Media inquiries: Mr Smith's office 02 6277 7500 - Departmental Media Liaison 02 6261 1555