Australia’s trade surplus increased in December to $6.8bn, a figure that was slightly lower than projected.
The trade surplus increase in the month of December can be attributed to a 2.8% increase in exports, combined with a 2.4% decrease in imports from the previous month.
A large factor in the increase in exports can be attributed to the 3.2% rise in the price of metal ores in December, caused by increased demand from China and weak supply of metal ores from Brazil. These factors have allowed metal ore exports to reach a record high in December, at $13.9bn, which is $3.2bn higher than December 2019.
Rural goods were another important driver of the export increase, posting an 18.4% increase in the month, mainly spurred by the 75% increase in cereals.
The factors above allowed December to be the 7th consecutive month of current account surpluses, capping the quarter off with a $17.4bn surplus, a $3.8bn increase from the September quarter.
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au
Source: Westpac
