Australia’s trade surplus hit a fresh record high, driven by strong prices of key exports from grains to metals and gold, in a result that’s likely to boost second-quarter gross domestic product.
The surplus swelled to A$17.7 billion ($12.3 billion) in June, surpassing economists’ estimate of A$14 billion, Australian Bureau of Statistics data showed on Thursday. Exports jumped 5%, while imports rose 1% as more Australian holidaymakers traveled overseas.
Australia has posted monthly trade windfalls for 4-1/2 years, underpinned by sales of iron ore and coal. It’s also a key exporter of LNG and has benefited from surging prices for the fuel, along with commodities like wheat amid fears of supply disruptions from Russia’s war on Ukraine.
Thursday’s data showed earnings from metals jumped 27% in June while cereal and grains climbed 21.1%. Australians traveling overseas boosted services imports by A$2 billion from an upwardly revised A$1.6 billion in May.
The figures will be welcomed by new Treasurer Jim Chalmers, who is struggling to contain a budget deficit and rising government debt after a fiscal stimulus to support the economy through the pandemic. Chalmers will release his first budget in October.