Australia records 2nd largest trade surplus on record

[Cerberus1]

According to figures released by the Australian Bureau of Statistics, Australia's trade surplus surged in August as exports of coal and other minerals increased despite concerns of a global slowdown.

 

Shipments from Australia grew 8% from the previous month, while imports rose 3%, the ABS said.

 

That resulted in a trade surplus of 3.1bn Australian dollars ($2.9bn; £1.9bn), the second-largest on record.

 

The data comes amid concerns that fears of a slowdown may hurt demand for Australia's mineral exports.

 

"Export volumes are really kicking along and that will be a big fillip for the economy in the quarter," said Brian Redican of Macquarie.

 

Analysts said the fact that a huge amount of Australia's mineral shipments head to Asian economies has been a big factor in ensuring that its export sector sustains its momentum, despite global slowdown concerns.

 

They said that as economies like India and China see more people move from rural to urban centres, the demand for minerals will continue to rise.

 

"Both these countries have more than 1 billion people, and that is a big factor", said David Lennox of Fat Prophets

 

As these countries undergo rapid urbanisation, they will also need to boost their power generation capacity in order to meet the increased demand for electricity.

 

"That process is not dependent on what happens in the US or European economies," Mr Lennox said.

 

He added that given these factors, exports of Australian minerals to the region will continue to grow.