Australia trade balance sinks to 4-1/2 year low in Feb as exports plunge

Published 03/04/2025, 02:18
© Reuters.

Investing.com-- Australia’s trade balance sank to a more than four-year low in February, falling well short of expectations, as exports tumbled while imports jumped on stronger demand for consumer goods.

Trade balance shrunk to a surplus of A$2.97 billion in February, much lower than expectations of an A$5.38 billion surplus, and fell from A$5.16 billion seen in the prior month. The reading was the lowest since August 2020 level, data from the Australian Bureau of Statistics showed on Thursday.

Overall exports fell by 3.6%, in contrast to a 0.8% rise in the precious month. The $1.58 billion decrease in goods credits occurred because non-monetary gold exports declined.

This was also due to lower demand for metals, coal, and other raw products as Australia’s biggest export destination, China, continued to see weak demand amid U.S. tariff tensions.

Australia’s weaker trade balance was driven by a jump in imports, as demand for overseas consumption and capital goods increased.

Imports jumped 1.6% month-on-month in February, compared to a 0.4% decline in January.

This was attributable to higher demand for overseas consumption goods such as household electrical items, and leisure goods, while capital goods also saw a jump in imports.

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