Australia's trade deficit falls in May

Australia’s trade deficit falls in May

The Australian Bureau of Statistics disclosed that the country's trade deficit fell from A$1.558 billion a month ago to A$1.556 billion in May, as exports of coal and iron ore increased. Shipments from Australia, the world's largest exporter of coal, iron ore and alumina, rose 2% to A$1.727 billion in May. Imports also rose 2% to A$16.283 billion. Exporters are benefiting from rising Asian demand, which has caused commodity prices to surge. Coal prices have surged to a record because of rising demand from steelmakers and power companies in China. Increased exports coupled with a gain in retail sales and building approvals in May, suggest that Australia's economy may have strengthened in the second quarter.