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Trade Surplus in Australia Increase, Signal Growth Recovery in Q1


Mai, 04 2018
watermark Economic news

Trade surplus in Australia expanded to its 10-month highs in March due to increase in resource exports. This further reflects the economic expansion before the first quarter after a disappointing result in the previous year.


The Australian Bureau of Statistics issued a set of data on Thursday which presented a  three-year high of approved new houses in March alongside the rapid population growth expected to bolster construction for the upcoming months. Australia’s trade surplus increased to A$1.53 billion ($1.15 billion) in March which doubled the forecast while projections for the months of January and February were revised to show significant profits.


The result for the overall surplus for March quarter gained A$4 billion which is major reversal against the past quarter amounted to A$1 billion deficit. According to analysts’ estimate, this could contribute a half percentage point to the GDP in the quarter and overturn a significant decline from the fourth quarter.


Also, experts assumed that GDP growth may escalate in Q1 about 0.8-1.0 percent. And this is a positive news for the Reserve Bank of Australia (RBA) which expects a noticeable growth in the current year and to improve wages and inflation in 2019.



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