SYDNEY- Australia’s current account surplus widened sharply in the June quarter as resource exports were boosted by both prices and volumes, making a sizable contribution to economic growth.
Data from the Australian Bureau of Statistics out on Tuesday showed the surplus ballooned to A$18.3 billion ($12.50 billion), from A$2.8 billion the previous quarter and just under forecasts of A$20.8 billion.
Exports of goods jumped almost 15 percent as miners shipped more resources to Asian customers amid surging prices, while imports tapered off after a very strong March quarter.
As a result, net exports will add 1.0 percentage points to gross domestic product (GDP), above forecasts for a 0.9 percentage point contribution.
The boom in export earnings has showered miners in extra profits while boosting employment, wages and tax receipts, which should lead to healthy growth in the income side of gross domestic product (GDP).
Australia’s trade surplus widened to a record in July as exports of iron ore, coal and liquefied natural gas all rose strongly, a surprisingly upbeat result that bodes well for mining profits and tax receipts.
Figures from the Australian Bureau of Statistics showed the trade surplus climbed to A$12.1 billion ($8.91 billion) in July, from an already high A$11.1 billion in June, beating forecasts of A$10.2 billion.
Exports jumped 5 percent on the back of Asian demand for LNG and thermal coal, combined with sharply higher prices for iron ore. Imports rose 3 percent, largely due to a sharp increase in parts and accessories for telecommunications equipment.
Exports to China also hit a record of A$19.4 billion, having climbed 72 percent from July last year when pandemic restrictions were curbing global trade flows.
Other data out on Tuesday showed government spending added a slight 0.1 percentage points to GDP, figures for which are due on Wednesday. Analysts had forecast GDP to rise 1.0 percent in the quarter, lifting annual growth to a solid 3.5 percent from 3.3 percent.
