Solid growth in mineral exports and lower imports due to coronavirus-affected supply chains has resulted in Australia’s trade surplus more than doubling in March to a seasonally adjusted $10.6 billion.
It was the 27th consecutive month of trade balances and the largest ever for a month.
The surge took the trade balance to $19.5 billion for the quarter, a record.
The result bettered market expectations, analysts had forecast a surplus of about $6 billion.
The economy recorded a trade surplus of $3.86 billion in February and a $5.04 billion surplus in January.
Exports of goods and services rose $5.55 billion, or 15% to a record $42.4 billion, according to trade data from the Australian Bureau of Statistics.
Australia Balance of Trade
The drivers were a jump in non-rural exports – iron ore, coal and LNG of 15% or $3.540 billion, while exports of non-monetary gold surged to $2.474 billion (15%). Rural exports rose 7% and service credits fell by more than $700 million or 9%.
Imports slumped 4% or more than $1.17 billion to just over $31.8 billion, the lowest they have been since November 2017.
That’s a sign of the underlying weakness in Australia and an early sign of the impact COVID-19 was having in the closing weeks of March on domestic demand as shops, importers, and wholesalers closed down.
