Australia Macro Service > Australia Data Insights

Trade surplus slips back in February

The balance on goods and services in February recorded an $825m surplus, down $127m from January's surplus of $952m. Exports were flat, with a surge in rural exports being offset by a $505m fall in non-monetary gold. Imports increased $130m, due mainly to a rebound in motor vehicles and services.

The positive global environment and coming online of LNG capacity will support exports growth this year, although expected declines in coal and iron ore prices will continue to weigh on revenues - we expect export volumes to increase by over 5%. In contrast, growth in imports is forecast to slow in line with the relatively subdued pace of domestic demand. As a result, we expect the trade balance to remain comfortably in surplus this year and next.

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