Photo by: Bloomberg
PERTH (miningweekly.com) – A surge in resources and manufacturing exports has led to a narrowing of Australia’s trade deficit, Trade and Investment Minister Andrew Robb said this week.
Quoting the latest Australian Bureau of Statistics (ABS) data, he revealed that the trade deficit had narrowed by 40.8% to A$1.3-billion in October, from a A$2.2-billion deficit in September, driven by both an increase in export values and a decrease in import values.
Resources exports rose 3.4% in October to A$12.6-billion, with metal ores and minerals exports contributing 72% to the increase in the total value of exports for the month.
The export of metal ores and minerals was up by 4.3% on that of September, rising to $7.1-billion, while the export of coal, coke and briquette exports increased by 3.3% to A$3-billion during the same period.
“Strong investment in the sector has driven these results and continues to produce solid dividends for the economy,” Robb said.
“Overall exports rose 1.5% in October to A$26.9-billion, while net exports had contributed 0.8 percentage points to gross domestic product growth in the September quarter.”
Robb said the three trade deals concluded with China, Japan and Korea would help underpin export growth into the future.
“Since coming to office, the government has pursued an aggressive trade agenda, which has led to the conclusion of transformational agreements with Korea, Japan and China – three powerhouse economies of our region,” Robb said.
Exports to several major trading partners were up in October from a year ago, including to Japan – up 9.7% to A$4.1-billion; to the EU – up 23.7% to A$1.1-billion; to the US – up 27.2% to A$1-billion; to India – up 24.4% to A$896-million; and to Singapore – up 13.9% to A$623-million.
Exports to China were down 5.3% to A$8.5-billion.
Western Australia had cemented its position as the nation’s leading exporter, with the state contributing 51% of Australia’s national merchandise exports in 2013/14.
Premier and State Development Minister Colin Barnett said the ABS figures indicated the state’s total merchandise exports were worth A$132-billion in 2013/14, up 14% on the previous year.
“With only about 11% of the population, Western Australia is now responsible for more than half of Australia’s total exports. This is the first time a single state is producing more than 50% of the nation’s exports.”
Barnett noted that this was a remarkable achievement, particularly compared with some of the larger states like Queensland, which contributed 17% of national exports; New South Wales, which contributed 14%; and Victoria, which contributed 9%.
The Premier predicted that export growth from the state would continue as major liquefied natural gas (LNG) projects started production.
LNG sales were expected to grow from 20-million tonnes a year in 2013/14 to almost 50-million tonnes a year by 2017/18 as developments like the Gorgon and Wheatstone projects reached completion.
“Western Australia also dominates Australia’s exports to major trading partners, accounting for 71% of exports to China, 50% of exports to Korea and 49% of exports to Japan,” the Premier said.