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Thursday, 6 June 2019

WA rating upgrade to Aa1

Brighter times ahead for WA

Australia's international trade balance continued to deliver thumping results in April 2019, despite the weakness in the domestic economy. 

Exports have boomed 17 per cent higher over the year to more than $40 billion per month, and annual exports have surged towards $460 billion in Aussie dollar terms. 

It's mainly a commodities story. 

The iron ore price boom saw all previous records shattered with an estimated $7½ billion of exports in a single month. 

LNG exports are now running at above $4 billion per month. 

The weaker Aussie dollar and an outright decline in imports have covered up some ills beneath the headline trade services reading. 

Finally, as a result of the iron ore boom, Western Australia is now running bonanza trade surpluses, while Queensland is quietly ramping up its returns from Gladstone LNG. 

Moody's has just upgraded Western Australia's rating to Aa1.

It's been a rough patch for WA, but brighter times seemingly lie ahead.