Australia's trade surplus surged to $4.5 billion in January, the second largest on record, driven by a sharp increase in gold exports, according to data from the Australian Bureau of Statistics released on Thursday.
Exports rose five per cent to $39.9 billion for the month, while imports increased three per cent to $35.4 billion. The result far exceeded market expectations of a $2.8 billion surplus, up from $3.8 billion in December.
The value of gold exports nearly tripled, jumping from $790 million in December to $2.2 billion in January, accounting for $1.4 billion of the total $1.9 billion increase in exports. CommSec chief economist Craig James attributed the strong performance to the quality of Australian goods and a lower Australian dollar boosting competitiveness.
Metal ores and coal exports also contributed, with values rising three per cent and six per cent respectively, adding $630 million to the trade balance. However, mineral exports to China declined, with iron ore lump falling 20 per cent, iron ore fines down eight per cent, and hard coking coal dropping 12 per cent.
On the import side, capital goods increased 12 per cent, consumption goods rose six per cent, and intermediate goods were up one per cent, contributing to a $1.1 billion overall rise. Westpac analyst Andrew Hanlan noted the surplus was second only to the December 2016 record of $4.7 billion.
