Australia’s Trade Balance Surplus in November

Australia’s trade balance grew more than expected in November, boosted chiefly by strong commodity exports as recent stimulus measures in top importer China helped shore up demand.

The trade balance grew to a surplus of A$7.08 billion ($4.39 billion) in November, data from the Australian Bureau of Statistics showed on Thursday. This reading exceeded expectations of A$5.75 billion and was an increase from the A$5.67 billion seen in the prior month.

The stronger print was driven primarily by a 4.8% month-on-month increase in exports, with shipments of metal ores and minerals acting as a major driver of this trend.

Australia’s commodity exports benefited from improving demand in China after Beijing announced a slew of aggressive stimulus measures in late-2024. China, being Australia’s biggest trading partner, is also a key source of global commodity demand, with expectations for demand to strengthen further in the coming months as Beijing prepares more economic support.

Additionally, mineral fuel exports were buoyed by cold weather conditions in parts of Asia and Europe, which increased demand for heating.

November’s sharp increase in exports helped offset a 1.7% month-on-month rise in imports. This rise in imports was driven by a mild uptick in business spending on fixed assets and infrastructure, while imports of consumer goods eased slightly.