Australia Trade Balance Swings to Surplus

Australia unexpectedly posted a trade deficit of AUD 3.02 billion in May 2026, shifting from a downwardly revised AUD 1.38 billion surplus in the previous month and defying market expectations of an AUD 2.2 billion surplus. It was the second trade deficit so far this year and the largest since December 2015, as exports fell while imports rose. Exports dropped 6.9% month-on-month to a four-month low of AUD 43.61 billion, reversing a 7.2% increase in April, primarily weighed down by non-monetary gold and metal ores and minerals. Meanwhile, imports grew 2.6% month-on-month to a record high of AUD 46.63 billion, accelerating from a downwardly revised 0.2% increase in April, reflecting stronger domestic demand, driven by imports of cars, aircraft, and data centers, amid higher fuel prices.

Australia posted a trade surplus of AUD 1.79 billion in April 2026, shifting from a downwardly revised AUD 1.02 billion deficit in the previous month and in line with market expectations. Exports grew 7.2% month-on-month to a three-year high of AUD 47.19 billion, after a downwardly revised 2.5% fall in March, primarily reflecting a sharp increase in metal ore and mineral prices amid supply concerns and rising energy costs. Non-rural goods shipments rose 11% to AUD 33.57 billion, mainly driven by a surge in metal ores and minerals, which soared 18.5% amid rising prices. Meanwhile, imports rose 0.8% month-on-month to AUD 47.19 billion, easing sharply from a downwardly revised 12.2% surge in March, as domestic demand moderated, with imports of computing equipment used in data centres falling back 42% after a surge in the previous month.

Australia unexpectedly posted a goods trade deficit of AUD 1.84 billion in March 2026, shifting from a downwardly revised AUD 5.03 billion surplus in the previous month and missing market expectations of an AUD 4.25 billion surplus. It marked the first trade gap since December 2017, as exports fell while imports surged. Exports dropped 2.7% mom to AUD 43.93 billion, reversing a downwardly revised 4.2% rise in February, mainly driven by other rural products. Also, non-monetary gold exports fell 6.1% to AUD 7.42 billion due to lower global gold prices, which fell over 10% in March, the steepest decline since June 2013. Meanwhile, imports jumped 14.1% to a record high of AUD 45.77 billion, reversing a downwardly revised 2.7% drop in February amid robust domestic demand. The growth was mainly boosted by purchases of capital goods, which surged 36.8% to AUD 12.68 billion, with ADP imports soaring 204.4%, reflecting strong investment in data centres, while purchases of fuel surged. .