Australia maintained a stable trade surplus of AUD 5.64 billion in August 2024, exceeding market expectations of AUD 5.5 billion. This marks the largest trade surplus since April, reflecting a balanced performance in both exports and imports despite slight declines in both categories.

Australia’s exports experienced a slight dip of 0.2%, falling to AUD 43.23 billion in August. This was largely driven by reduced shipments to key trading partners:

• Malaysia: Shipments to Malaysia saw a significant decline of 15.1%, impacting overall export performance.
• South Korea: Exports to South Korea also dropped by 4.3%, contributing to the overall reduction.

Despite these decreases, Australia’s strong export base, including commodities like minerals and agricultural products, helped sustain the trade surplus.

Imports Hit Four-Month Low

On the import side, Australia recorded a 0.2% decline, with imports falling to AUD 37.58 billion, the lowest level in four months. The drop was primarily due to reduced purchases in specific sectors:

• Non-Industrial Transport Equipment: Lower demand for non-industrial transport equipment was a key factor in the reduction of import values.

This decline in imports helped balance the slight decrease in exports, ensuring that the trade surplus remained robust.

Economic Implications of a Strong Trade Surplus

Australia’s steady trade surplus is a positive indicator for the country’s economy, as it reflects the resilience of its export sector despite challenging global conditions. The slight decline in imports, particularly in transport equipment, suggests potential shifts in domestic demand patterns.