Australia, Feb 02: Australia's monthly trade deficit widened in December as the stronger local dollar encouraged consumers to take advantage of cheaper imported goods ahead of Christmas, according to official data released on Monday.
Australia's monthly trade deficit widened in December as the stronger local dollar encouraged consumers to take advantage of cheaper imported goods ahead of Christmas, according to official data released on Monday.
Australia recorded a trade deficit of 2.55 billion Australian dollars (USD 1.95 billion) in December, compared to Australian dollars 1.72 billion (USD 1.31 billion) in November, the Australian Bureau of Statistics said.
The sharp increase in the trade gap was also partly caused by a drop in international tourism, which had been boosted by the Rugby World Cup competition in Sydney in October and November.
The bureau said travel services fell 12 per cent in December, while exports of non-rural goods dipped two per cent. But a recovery by farms wracked by drought had pushed overseas sales of rural goods up six per cent and helped limit the overall fall in exports in the month to two per cent, the statistics showed.
Imports rose five per cent, driven by a 42 per cent leap in petrol and other fuels, and a 22 per cent rise in machinery and industrial equipment.
Imports of consumption goods, including food, clothes, toys and household appliances, rose four per cent as a higher Australian dollar cut the cost of such items. The Australia currency has appreciated by more than 30 per cent against the US dollar in the last 12 months.
The bureau said the trade deficit for the three months ended December narrowed to Australian Dollars 5.98 billion (USD 4.56 billion), an improvement on the Australian dollars 6.71 billion (USD 5.12 billion) shortfall in the previous quarter. Bureau Report