Investing.com-- Australia’s trade balance grew sharply above expectations in March, as imports fell and exports surged ahead of the expected announcement of U.S. tariffs this month.
Trade balance grew to a surplus of A$6.90 billion in March, much higher than expectations of a A$3.23 billion surplus, and compared to A$2.97 billion seen in the prior month.
The reading was the highest since November 2024 level, data from the Australian Bureau of Statistics showed on Thursday.
The stronger print was driven chiefly by a 7.6% month-on-month increase in exports, with increased shipments of metal ores and minerals during the period.
Export prices rose, led by a 5.4% jump in iron ore due to stronger demand from China, while gold prices also climbed 12.4% as global uncertainty grew, with central banks buying more gold.
The country is Australia’s biggest trading partner, rushed to import metal ores and minerals, ahead of expected U.S. tariff announcements in April, which raised global trade war fears.
The weakness in the Australian dollar against the USD pushed up both import and export prices this quarter, the ABS said.
The surplus was also boosted by a decline in imports.
Imports fell 2.2% month-on-month in March, in contrast to a 1.8% rise in February. This was attributable to lower demand for capital goods.