Significant Positive Balance of Trade: A Beacon of hope Amidst Economic Turmoil for Australia
As many economies, including Australia, are facing the possibility of recession, it’s important to note that there may be a silver lining. Australia’s balance of trade, or the difference between the value of our exported goods and services and imported goods and services, has grown significantly over the last five years.
In fact, our balance of trade has grown from a modest $15.5 billion to a staggering $134.8 billion. This is despite trade restrictions imposed by our biggest trading partner.
Data source is ABS
Yr 1 is Dec 21 to Nov 22.
Having a positive balance of trade, or a trade surplus, can have several positive effects on a country’s economy. It generates more income, strengthens the currency, and helps to pay off debt and build up foreign exchange reserves.
In short, Australia’s strong balance of trade can be seen as a form of insurance against going into recession. Million dollar question is, does this impact our property market?
