October 12, 2008

Australian trade deficit widens as coal exports drop

Bloomberg reported that Australia's trade deficit widened more than economists forecast in January as imports rose and floods disrupted exports of coal.

The Bureau of Statistics in Sydney said that the shortfall grew to AUD 2.72 billion from a revised AUD 1.94 billion in December 2007. The median estimate of 24 economists surveyed by Bloomberg News was for AUD 2.55 billion gap.

It said that a worsening trade deficit may further curb the economy, which grew at the slowest pace in more than a year in the fourth quarter as resource shipments dropped. Deliveries of coal from BHP Billiton Ltd. and other producers have been hampered by floods, while cyclones led to the temporary closure of oil fields and iron ore export ports this year.