Investing.com-- Australia’s trade balance shrank more than expected to a four-year low in September as the country’s key metal and mineral exports were pressured by weak demand in China, while imports also fell.
Trade balance fell to a surplus of A$4.61 billion ($3.03 billion) in September, data from the Australian Bureau of Statistics showed on Thursday. The reading was weaker than expectations for a surplus of A$5.24 billion, and shrank from the A$5.64 billion seen in the prior month.
Australia’s trade balance was at its weakest level since August 2020, and was spurred chiefly by a sustained drop in exports.
Overall exports fell 4.3% month-on-month in September, driven by a sustained drop in metal ores, minerals, coal and mineral fuel exports. This trend was spurred chiefly by weak demand in China, which is Australia’s biggest trading partner.
Chinese commodity demand suffered as the country grappled with slowing economic growth amid persistent deflation and a property market slowdown. But this trend is expected to shift in the coming months, especially after Beijing announced its most aggressive round of stimulus measures yet over the past month.
Australian imports fell 3.1% month-on-month in September, as local demand remained pressured by high interest rates and sticky inflation.