Trade balance widens, but trend is still down in Australia

Australia’s goods trade surplus increased by $776 million to $3.37 billion in December. Exports rose 1% m/m on the back of higher commodity and rural exports. Meanwhile, imports fell 0.8% m/m, with capital goods dropping 2.5%.

Weaker global demand and softer commodity prices will weigh on export values over this year. Meanwhile, investment in data centres is likely to support growth in capital goods imports. Combined, these trends should place downward pressure on the trade surplus.

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