Australia’s trade surplus swells to record as export prices soar
by Bloomberg May 06, 2020
Australia’s trade windfall increased to a new high as prices and volumes of commodities like iron ore surged, boosting the economy as it headed into the late-March coronavirus lockdown.
The surplus spiked to a record A$10.6 billion ($6.8 billion) in March, exceeding economists’ estimates of A$6 billion and up from a downwardly revised A$3.9 billion in February, Australian Bureau of Statistics data showed Thursday. Overseas shipments advanced 15%, the most since September 2000.
“China’s reopening after the February lock-down provided a boost to the trade in goods, exports (+21.6%) and imports (+1.3%),” said Andrew Hanlan, a senior economist at Westpac Banking Corp. “Key to this was the rebound in iron ore production and export shipments post Cyclone Damien. The lift in the iron ore price in Australian dollar terms was also a plus.”
Hanlan said in a research note that services trade plunged because of the reduction in international travel.
The result is a welcome surprise for an economy shedding jobs and awaiting the economic hit from the coronavirus. Australia has kept shipping commodities to China throughout March and April, which will prevent a complete collapse; still, the central bank estimates that the economy will contract 10% in the first half.
Bloomberg
© Bloomberg
The author’s opinion are not necessarily the opinions of the American Journal of Transportation (AJOT).
Similar Stories
Strengthening supply chains: TIA celebrates passage of CTPAT Pilot Program Act
The Transportation Intermediaries Association (TIA) - the only organization exclusively representing transportation intermediaries of all disciplines doing business in domestic and international commerce –announces the successful passage of S. 794,…
View ArticleUS and Ecuador convene meeting of the Trade and Environment Committee under U.S.-Ecuador Trade and Investment Council
The Committee, chaired by Assistant United States Trade Representative for Environment and Natural Resources Kelly Milton, exchanged views and priorities regarding trade and environment policies, including addressing the climate crisis,…
View Article
Biden-Harris Administration awards almost $5 million to small businesses to bring new CHIPS Technology to the commercial market
View ArticleNew US Government regulation on imports ‘will not put e-commerce genie back in the bottle’
The Biden administration is moving to curb low-value shipments entering the US duty-free under the $800 ‘de minimis’ threshold, which it says has been abused by Chinese e-commerce platforms such…
View ArticleAAFA and FLA reiterate that interim Bangladesh gov. must focus on worker rights and ILO standards
In a joint letter to Dr. Mohammad Yunus — Chief Advisor of the Interim Government of the People’s Republic of Bangladesh — the American Apparel & Footwear Association (AAFA) and…
View Article
Transportation costs slow inflation for first month since July 2023
View ArticleGet the most up-to-date trending news!
SubscribeIndustry updates and weekly newsletter direct to your inbox!
Follow us on social media:
