Australia posts trade deficit in February for first time in a year

Australia's trade balance unexpectedly swung to a deficit in February for the first time in almost a year, as disruptions from natural disasters cut mining shipments and higher fuel prices boosted imports, latest data showed on Tuesday.


The Australian Bureau of Statistics (ABS) seasonally adjusted figures showed a trade deficit of 211.63 million U.S. dollars.


The deficit is also a steep turnaround from Australia's 1.48 billion U.S. dollars surplus in January, and the first time imports exceeded exports since March 2010.


Earlier, economists had expected a fall in the surplus because of the flood effect on exports, but were surprised by the steep rise in imports. The median estimate in a Bloomberg News survey of 23 economists was for a surplus of 1.24 billion U.S. dollars in February.


The ABS report noted that exports fell two percent, but imports surged five percent.


The biggest fall in exports was in the volatile non-monetary gold sector, which slumped 45 percent, while exports of metal ores and minerals fell 560 million U.S. dollars, or eight percent.


According to Westpac senior economist Andrew Hanlan, the decline in the trade balance can be largely attributed to recent weather events.


"Queensland, and also Western Australia, they've had some severe weather which has interrupted iron ore production," he told ABC News on Tuesday.


"So the two key exports really that have big impacts are coal, and iron ore and certainly we've seen disruptions to both of those so that certainly has driven this deterioration."


There were also a steep fall in coal volumes out of Queensland, with coking coal volumes down nine percent and thermal coal volumes slumping 20 percent.


However, there was some good news for Australia's struggling tourism sector, with a four percent increase in exports (that is foreign visitors spending their money in Australia) to 2.99 billion U.S. dollars.


The main driver of the surge in imports was 26 percent rise in the value of fuel and lubricants being brought into the country.


There was also an increase in imports of some capital goods, and parts for manufacturing.
(Source:http://news.xinhuanet.com)