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Friday, 4 May 2018

Exports hit record high in March

Exports surge

Hello, hello...exports surged to a record high at just shy of $35 billion in March 2018, driving a massive $1.5 billion trade surplus for Australia.

Wow! A turn-up for the books after all the talk of the mining boom being squandered.

Net exports will in turn contribute (around +0.5ppts) to a considerably stronger first quarter for the economy, perhaps notching GDP growth of up to +1 per cent in the quarter. 

How so record exports?

Over the month of March itself cereal grains exports were up, but over the year the big story has been the huge LNG ramp-up.

In fact, not only did LNG exports hit a fresh monthly high of $2.8 billion, annual gas exports hit a record high too at more than $28 billion (up from close to zero at the beginning of the resources boom). 

Hang onto your hats, because there is plenty more where that came from in the pipeline too. 

Gladstone LNG has been a big part of that story, sending the state of Queensland back into a healthy trade surplus position as the royalties roll in. 

Finally, although you might want to quibble about the impact of seasonal adjustments - and specifically the different timing of Lunar New Year - but any way you look at it Australia is enjoying huge benefits from Chinese tourism, as well as its record international student intake.

The seasonally adjusted trade surplus for the month of March was more than $1.5 billion, while Ferbuary's result was also revised up substantially to $1.35 billion. 

Overall, the first quarter saw a fresh all-time high for Australian exports and a monster trade surplus of more than $4 billion to boot. 

Resources exports beginning to hit their straps - great to see!