Gone through 2026. The ABS.
- The seasonally adjusted balance on goods decreased $2,621m in May.
- Goods credits (exports) decreased $1,168m (2.7%) driven by Non-rural goods.
- Goods debits (imports) increased $1,453m (3.8%) driven by Capital goods.
The year has been OK for exports because most of the bulk commodity falls have been in coal, which is largely sold on annual contracts.
But because we make nothing whatsoever anymore, imports are climbing at a good clip.
Consumption is playing its usual role, but capital goods are the real story as we make nuthin’ of sophistication.
Don’t kid yourself. This is going to get much worse.
Albo’s stupid “assembled in Australia” policies will make no difference because we won’t make any componentry.
We’ll just assemble the LEGO set with vastly more expensive labour as house prices rise and consumption imports gets sucked in.
Trade wars will deliver us cheaper and cheaper goods from global surpluses.
It’s back to endless deficits for the Australian external balances.
