Record iron ore prices helped lift Australia’s trade surplus to $29 billion in the June quarter, but low export volumes combined with strong imports are expected to slice 1 percentage point off economic growth.
The trade result helped lift the current account balance to a ninth consecutive surplus at $20.5 billion, or a record 3.8 per cent of gross domestic product.
The hit to GDP from trade will be partially offset by stronger than expected government stimulus spending and public investment, which will add about 0.7 percentage points to the result.
To read the full article by The Australian Financial Review, please click here.