Balance of trade surplus positive for Q4 growth

By Leith van Onselen

The ABS has released its preliminary Balance of Trade data for the December quarter, which revealed a big $2,919 million turnaround from the revised September quarter 2013 deficit of $2,672 million, with Australia posting a $247 million trade surplus over the quarter.

According to the ABS, the main components contributing to the turnaround to surplus were:

• Goods exports up $2,420 million (4%), due mostly to a $1,615 million (7%) increase in metal ores and minerals exports, and a $764 million (8%) rise in coal, coke and briquettes exports;
• Services exports up $194 million, due to an increase in tourism;
• Goods imports down $137 million, driven primarily by a reduction in capital goods, machinery, industrial and transport equipment; and
• Services imports down $168 million, caused by a reduction in transport.

Unfortunately, the ABS does not provide time series data, which means no charts for you!

Regardless, the result will be positive for the upcoming December GDP release, which should post a significant positive contribution from net exports.

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