Australia might be facing the biggest fall in its trade
balance to date.
Australia recorded a booming trade deficit of AUD 2.261
billion in September 2014, a figure of AUD 1.148 billion more than its revised
deficit figure in the previous month. The revised deficit was forecasted to be
at AUD 1.013 billion but, it reached to AUD 2.261 in September”, said
Australian Bureau of Statistics. Australia has been facing ups and down in its
trade balance from the beginning of this year. With the booming imports, the
exports pace lagged behind leading to the huge gap in trade balance and the
deficit surpassed the market forecast. This deficit is said to be the highest
deficit recorded since November 2012.
The imports of Australia rose by 6% in the period while the
exports increased just by 1% in the same period. The main imports of Australia,
fuels and lubricants, increased by 31% while the capital goods and consumer
goods increased just by 3%.
Australian exports took a upward move by AUD 269 million
hitting the total figure of AUD 26,457 in September as compared to previous
month. The main commodities helping the export to rise were meat and meat
products, and wool and sheepskins. In the observation period, the exports of
meat and meat products increased by 5% while the export of latter increased by
7%. However, the fall in the export of metal ores, minerals, briquettes, coke
and coal by 6% crippled the growth rate. The devaluation of Australian dollar
also made the exporters poorer.
On the other side, Australian import in the month of
September rose by AUD 1559 million, as compared to the previous month, hitting
the mark of AUD 28,718 billion. The import of intermediate goods contributed
hugely to boost the imports. The import of fuels and lubricants totaled to AUD 904
million, a 31% increase from previous month. The total imports of intermediate
goods and merchandise increased by AUD 974 million, an increase in 11% than
that of previous month. 3% increase in imports of consumable goods and capital
goods each, 7% increase in import of non-industrial goods and 15% increase in
the imports of machinery and industrial goods took the total imports to level
high.
Australia has been facing severe deficit in its trade
balance since the beginning of this year. The economist has predicted that this
will continue to remain for some time till the Australian dollar revives its
value. Even though the export value has reduced, the volumes are still high and
this serves as a glowing hope for Australian economy.
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