Australia boasted its first trade surplus in almost three years in November as surging commodity prices boosted export earnings beyond all expectations, a much-needed windfall that all but rules out the risk of recession for the resource-rich nation.
Friday's data from the Australian Bureau of Statistics showed a trade surplus of A$1.24 billion ($908.92 million) in November, far above forecasts of a A$500 million deficit.
Exports jumped by 8.4 percent, or a whopping A$2.3 billion, to top A$30 billion for the first time ever. Coal, iron ore and rural exports all enjoyed double-digit gains, while imports were unchanged on the month.
The country was also shipping more product, particularly iron ore and liquefied natural gas, which made it very likely net exports would add to economic growth in the fourth quarter after being a drag the previous quarter. That in turn meant gross domestic product (GDP) should have rebounded after a shock 0.5 percent drop in the third quarter.
"It almost certainly averts the risk of recession," said Michael Workman, a senior economist at CBA. "GDP could easily grow 0.6 to 0.7 percent, and quite possibly more."
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