Australian trade deficit doubles on commodity prices
Australia's trade deficit more than doubled to A$2.26 billion (£1.2
billion, $1.96 billion) in September, data showed. Exports rose 1%,
while imports were up 6% as Australia brought in more fuel.
The deficit, a balance of goods and services, widened a lot more than
market expectations of A$1.95 billion and compared to a revised deficit
of A$1.013 billion in July.
Falling prices of key commodities such as iron ore is being blamed
for the jump. "The trade deficit for September came in worse than
expected with falling commodity prices clearly weighing on export
values," said AMP Capital chief economist Shane Oliver.
Export earnings in Australia, home to some of the world's biggest
miners like BHP Billiton and Rio Tinto, have been impacted by the slump
in prices.
The price of iron ore is down 40% this year, while thermal coal
prices are hovering near five-year lows of A$63 a tonne on oversupply in
the market and slower demand from China.
The two commodities are Australia's top two exports. Revised
employment data showed a weaker labour market.
- BBC
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