A sharp decline in mining exports makes Australian trade deficit higher than exp

A sharp decline in mining exports makes Australian trade deficit higher than expected

Australian Bureau of Statistics data released today show that in October the Australian trade deficit $ 3.3 billion, higher than economists estimated $ 2.4 billion. Still higher than the $ 2.4 billion deficit in September. The main factor is the sharp decline in mineral exports expanded trade balance. This month exports increased by 3%, while imports remained flat.

      Australia's other major export categories: rural goods and services also failed to boost exports.

      Judging from the trend, in October 2015 for goods and services trade deficit of $ 2.684 billion, compared with the previous month, decreased by 4%. The seasonally adjusted goods and services deficit of $ 3.305 billion in October, compared to September increased by 38%.
Reduce iron ore exports

      JP Morgan economist Tom Kennedy reduce Australia's iron ore exports expressed surprise. He noted the importance of Australia's export commodities such as iron ore exports decline is the main catalyst for the Australian economy downturn.

      Exports, especially minerals and resources for 2015 economic growth is essential. A large mining exports fell in the second quarter led to economic growth down to 0.3% of the main reasons. The next three months, net rebound in exports, and promote economic growth in the third quarter, increased to 0.8%.
      Widening trade deficit was mainly due to the decline in iron ore exports, Port Hedland iron ore shipments dropped significantly. NAB economist Terry Crane (TapasStrickland) said that even Roy Hill iron ore exports led the increase in exports, but low-cost iron ore over the next few quarters will continue to affect its export value. But there is always the bright side, along with a significant increase in liquefied natural gas (LNG) exports, the trade deficit in 2016 will be reduced.