Australia’s trade balance unexpectedly swung into its largest deficit in more than a decade in May as a sharp drop in commodity exports outweighed a rise in imports.
The Australian Bureau of Statistics reported a goods trade deficit of AUD 3.02B, compared with a revised surplus of AUD 1.38B in April and well below market expectations for a AUD 2.18B surplus. The shortfall marked Australia’s largest monthly trade deficit since late 2015.
The deterioration was driven primarily by a -6.9% mom decline in exports following April’s surge. Non-monetary gold exports plunged -35%, while iron ore exports fell -9%, highlighting the volatility of Australia’s commodity-driven trade flows. Imports, meanwhile, rose 2.6% mom, led by stronger purchases of motor vehicles, aircraft and telecommunications equipment. Import increased 0.2% mom in April.
| Indicator | Previous | Latest | Consensus |
|---|---|---|---|
| Goods Trade Balance (AUD) | +1.38B | -3.02B | +2.18B |
| Exports (MoM) | 7.2% | -6.9% | |
| Imports (MoM) | 0.2% | 2.6% | |
| Non-Monetary Gold Exports | -35% | ||
| Iron Ore Exports | -9% |
