Australia’s trade surplus touches record high in August

Australia’s trade surplus recorded a surprising record-high growth in August. This came as an increase in liquefied natural gas and coal exports greatly compensated for a drop in iron ore prices, providing a boost to mining earnings and tax collections.

Surplus on international trade climbed to A$15.1 billion ($11.0 billion) in August, data from the Australian Bureau of Statistics showed. This was better than analysts’ forecasts of a decline to A$10.3 billion. The latest reading is currently the highest on record and followed last month’s reading of A$12.7 billion.

Exports jumped 4.1% to A$48.5 billion, lifted by strong demand on LNG, hard coking coal, and thermal coal in Asia.

Demand for energy in Asia increased as electricity shortages in China resulted in blackouts and the nation’s LNG and coal supplies ahead of winter.

In August, Australia’s goods exports to China alone were A$18.6 billion, rising 55% year on year and with no influence from ongoing trade and political disputes with Beijing.