According to The Wall Street Journal’s Money Beat, “A smaller-than-expected trade surplus was a reflection of a fall in iron ore prices and metal ore exports for the month. Still, there is a bright spot in that Australia posted a record A$9.5 billion worth of exports to China — its biggest trading partner — despite the slowdown there. That should help support the economy even as policy makers try to steer Australia from its dependence on the resources sector.”However, the so-called bright spot may actually be a shining light on Australian exports and the overall economy as the country’s presence becomes even more global and diverse.
A report by the ABC Australia notes, “The Australian Bureau of Statistics says that exports from South Australia are up over the past year, and agricultural products make up a big part of the jump. Meat exports rose by 30 per cent to $208 million, and wheat, the single largest export, jumped another $136 million or 11 per cent.”
Despite economists banking heavily on agriculture trade and manufacturing, iron ore could still be making a comeback. Australia’s burgeoning relationship with China could be proof positive.
According to The West Australian, an affiliate of Yahoo News, “In March, Australia exported a record $9.5 billion in goods to China, overwhelmingly iron ore. Through the first nine months of the 2013-14 financial year, Australia had a $36.9 billion surplus with China. By the end of the financial year it will peak at more than $50 billion. Total Australian exports to China have so far this financial year climbed by a third to soar through the $100 billion mark.”
In the past, Western Australia in particular has made its mark globally by taking advantage of trade opportunities in Africa, as well. In 2013, Western Australian brought in $1.4 billion through African trade alone.