Mining Boom Sees Australian Trade Surplus Reach Highs

By Joel ScanlonJul 6 2011

The Australian mining boom has carried the country’s trade surplus to a seven month high of $ 2.33 billion. As per the Bureau of Statistics this is the revised trade surplus from the $ 1.62 billion in April. The report was released in Sydney on Tuesday and will give a major boost to the nation.

Thanks to the natural disasters last quarter the mining industry has had its worst performing three months in two decades. The mining industry has allowed the trade surplus to widen as iron ore demands met new highs in the global market.

The exports have exceeded the imports by $2.33 billion and Andrew McManus, an economic analyst said that the trade surplus widening was largely due to the increase in iron ore exports. However the flooded mines in May have reduced the exports of coal and they will not provide the significant rebound to the second quarter.

Reserve Bank of Australia Governor Glenn Stevens has paused raising benchmark cash rates at 4.75 percent for the past six meetings to help the economy recover from natural disasters at home and abroad. They will take a decision on the rate this afternoon. The Australian dollar traded at $1.0708 as of 11:32 a.m. in Sydney, from $1.0715 before the report and $1.0734 yesterday.