Australia's trade deficit narrows as expected

Australia’s trade deficit narrows as expected

Australia's trade gap narrowed in August due to a drop in imports. As previously reported by SteelOrbis, trade deficit was expected to narrow in August. Accordingly, the data released by the Australian Bureau of Statistics (ABS) shows that trade gap dropped to A$1.93 billion in the mentioned period from A$2.67 billion recorded in July as imports decreased by 5%. Imports of capital goods fell by 11% while consumer goods purchases were down by 5%. Exports of non-rural goods rose by 3%. The National Australia Bank stated that the decline in imports indicated a softening in the economy and a slowdown in domestic demand. Trade Minister said that exports have recovered over the last twelve months, reflecting strong growth in rural and energy exports due to continuing strength in the economies of key trading partners in Asia, particularly South Korea, China and Japan.