Australia’s trade surplus beats estimates as imports tumble

Australia’s monthly trade surplus widened in June as iron-ore shipments gained while overall exports slid less than imports.

The windfall was A$11.3 billion ($7.4 billion), compared with estimates for a A$10.75 billion gain and a downwardly revised A$10.5 billion in May, Australian Bureau of Statistics data showed Thursday. Overall exports slid 2%, while imports dropped 4% in the month.

Thursday’s data showed metal ores and minerals, which includes iron ore, climbed 2.3%, while coal, coke and briquettes fell 6.5%, the data showed. Other mineral fuels, which includes liquefied natural gas, declined 8.9%.

Australia has posted monthly trade surpluses since January 2018, underpinned by sales of iron ore and natural gas to the rising economies of the Asia-Pacific region. The export windfall will see the budget return to an annual surplus for the first time in 15 years.

Demand for Australian goods has been driven by top trading partner China with its strong appetite for iron ore and coal. Trade in some other commodities such as timber resumed recently after ties thawed between Beijing and Canberra following a political dispute. 

Travel exports climbed 2.9% as a rebound in inbound tourism and international student arrivals that began earlier this year continued.