Trade surplus increases to $1.6 billion
Media release
6 July 2010
Trade figures released this morning show Australia has recorded its third largest trade surplus on record.
The trade surplus of $1.6 billion (seasonally adjusted) in May highlights the resilience of the Australian economy, particularly during an uncertain global economic outlook.
In original terms (without seasonal adjustment), the surplus of $3.2 billion is the largest recorded.
The value of Australia's exports increased by 6 per cent to $24.7 billion despite ongoing uncertainty in Europe and global financial markets.
The increase in the trade surplus was driven largely by increased exports from the resources and rural sectors.
Gold exports rose by $772 million or 66 per cent in May, reflecting recent increases in the gold price and higher export volumes to Europe. Coal exports increased $329 million or 10 per cent as a result of higher prices and the resumption of exports after port closures in March and April. Exports of metal ores and minerals including iron ore increased 3 per cent.
I am particularly pleased to see further evidence in today's figures of recovery in the rural sector.
Cereal exports increased $104 million or 27 per cent. Other rural goods increased $101 million or 11 per cent, with the volume of cotton exports rising sharply.
There are also signs that Australian business continues to invest in additional capacity to take advantage of the recovery in global commodity prices.
Imports rose strongly in May, increasing by 4 per cent to $23.1 billion. This increase was driven largely by a 10 per cent increase in the value of capital good imports, an important signal of economic growth.
Australian businesses are showing both the confidence and the capacity to undertake further investment.
Media inquiries
- Minister's Office: (02) 6277 7500
- Departmental Media Liaison: (02) 6261 1555