Australia Trade Surplus Surges in February
Australia’s trade surplus expanded significantly in February, driven by a strong rise in exports and a decline in imports, according to official data released on Thursday.
The seasonally adjusted trade balance reached A$5.69 billion ($3.94 billion), far exceeding market expectations of A$2.81 billion. The figure also marked a sharp increase from January’s revised surplus of A$2.26 billion, based on data from the Australian Bureau of Statistics (ABS).
Export Growth Led by Gold Shipments
Exports increased by 4.9% month-on-month, recovering from a 1.6% decline in January. The rebound was largely fueled by a surge in non-monetary gold exports.
According to the ABS, gold shipments jumped nearly 30% during the month, contributing significantly to the overall export growth.
Imports Decline Supports Trade Balance
At the same time, imports fell by 3.2% in February, reversing a 1.0% increase recorded in the previous month. The drop was also driven by non-monetary gold, along with reduced imports of capital goods.
Weakness in Key Commodity Exports
Despite the strong headline figures, underlying export performance remained mixed. Shipments of key commodities such as iron ore and coal declined during the month, while liquefied natural gas (LNG) exports also decreased.
These trends suggest softer demand conditions in global markets, particularly for Australia’s core resource exports.
Limited Impact from Middle East Conflict (For Now)
The ABS noted that February’s trade data has not yet reflected the impact of the Middle East conflict. Any potential effects from geopolitical tensions are expected to become visible in the March data.
