Fed: Import plunge produces best trade deficit in 2 years

AAP General News (Australia)
08-29-2000
Fed: Import plunge produces best trade deficit in 2 years

CANBERRA, Aug 29 AAP - A post-GST fall in imports helped Australia to its lowest trade
deficit in more than two years in July.

Imports fell five per cent, seasonally adjusted, and with exports rising a further
two per cent, the Australian Bureau of Statistics (ABS) said the trade deficit fell to
$537 million.

That was down $889 million on June and more than $1 billion in just two months and
is the lowest deficit since February 1998.

Exports were up $241 million in July to a new record of $11.9 billion, due entirely
to a rise in rural exports, which were up $251 million or 12 per cent seasonally adjusted
to an all-time record.

However, the major reason for the improvement was the drop off in imports which fell
five per cent - the first time imports have fallen this year.

This was due mainly to a sharp fall in imports of fuel and also the lack of any big
aircraft imports for the month.

AAP ss/mfh/cd/bwl

KEYWORD: TRADE

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