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Friday, 4 December 2020

Things are shaping up nicely for the west coast

Iron ore ftw

Australia recorded another thumping trade surplus of $7½ billion in October.

The cumulative trade surplus over the past two years has been an unprecedented $138 billion.

Unfortunately things at home haven't been so clever this year due to the shutdown, and on the exports side coal, natural gas, and services exports have all floundered badly.

Iron ore, on the other hand, has exploded, and October was a record month for A$ exports, at more than $11 billion.

There's plenty more to come here in November too as the iron ore price has steamed to 6-year highs. 

Part of the reason that border closures haven't hurt more has been the lack of Australians travelling overseas, and as such all those extra A$ being spent at home in domestic and online retail, and now increasingly on internal travel and new vehicles. 

Overall, Australia is shaping up for a better year in 2021, and especially so in Western Australia.

The economies of Sydney and Melbourne, however, cannot start to fire again in earnest until the borders are reopened.