Merchandise exports from Western Australia in the 12 months to March were down almost 10 per cent on the previous corresponding period, according to data released by the Australian Bureau of Statistics.
Merchandise exports from Western Australia in the 12 months to March were down almost 10 per cent on the previous corresponding period, according to data released by the Australian Bureau of Statistics.
Merchandise exports were down $12 billion to $118 billion for the period.
The fall demonstrates the severe pressure on the state’s economy, with the Treasury’s mid-year budget review late last year having forecast a 5 per cent increase in merchandise exports this financial year.
That increase was to play a key part in driving gross state product growth of 2.25 per cent for the year to June 30, with other spending predicted to fall substantially.
State final demand was expected to fall by 1 per cent this financial year, meaning the external balance had been the key pillar to prop up growth in the state.
Merchandise imports were also down around 0.6 per cent for 12 months to March, to $34.8 billion, lower than the 8 per cent figure predicted in the budget.
The state did maintain its mantle as the nation’s export powerhouse, although it has fallen from its peak to now be responsible for 45 per cent of the national total.
Commonwealth Bank economist Savanth Sebastian said that, nationally, the figures were disappointing but not unexpected.
“Not only has Australia now recorded a year of consecutive trade deficits, but the cumulative deficit totals over $15.5 billion,” he said.
“The main reason that Australia continues to rack up trade deficits is due to the slide in export prices for metal, ore and minerals – particularly coking coal and iron ore.
“Given the reliance on the mining sector to drive exports, there is no doubt likely to be more volatility in future monthly trade data.”
The overwhelming majority of WA merchandise exports went to the Asia Pacific Economic Cooperation region, at almost 91 per cent.
Trade with the state’s biggest export partner, China, fell dramatically, down $11 billion from $70 billion to $59 billion for the 12 months to March 2015. Japan also fell, 4.4 per cent lower to $22.9 billion.
The third largest export destination, South Korea, was also well down at $8.9 billion (10 per cent lower), while trade with India was down 4.2 per cent to $1.8 billion.
It was the Asean countries that supported strong growth, up 31 per cent to $13.3 billion for the 12-month period.
Indonesia was up around 30 per cent, to $1.8 billion for the period, while the Philippines increased a similar percentage, to $659 million.
Singapore and Thailand increased 42 and 43 per cent respectively, to $5.5 billion and $2.1 billion each.
