‘We already know that after falling by 60% month-on-month in April, the volume of coal leaving the largest three ports in Queensland leapt by 130% in May, thereby taking it almost back to the level seen in March.’ — Paul Dales, Capital Economics
Australia’s trade surplus narrowed more than expected in April, official figures revealed on Thursday. The Australian Bureau of Statistics reported that the country’s trade balance dropped to a surplus of A$0.56B in April, down from the preceding month’s surplus of A$3.17, whereas analysts anticipated a fall to A$1.91B. Exports dropped A$2.8B, or 8%, during the reported month, on a seasonally adjusted basis amid a 45% decrease in the value of coal exports. The decline in exports was a result of the devastation wrought by Cyclone Debbie in March, which hit the north-eastern Australian state of Queensland, causing closures of ports, mines and rail lines. Thursday’s trade data suggested that the negative impact of Cyclone Debbie on economic growth had transferred into the second quarter. Meanwhile, imports fell A$0.2B month-over-month in April, or 1%. In real terms, Australian exports dropped 1.6% in the first quarter of 2017, weighing on the country’s economic growth. Following the release, the Australian Dollar dropped from 75.37 to 75.30 against its US counterpart.
