Australia Records Largest Trade Deficit Since 2015 Amid Declining Gold and Iron Ore Exports

In May, Australia’s trade balance unexpectedly turned into its largest deficit in more than a decade, as a sharp decline in commodity exports outweighed a rise in imports.

The Australian Bureau of Statistics reported a goods trade deficit of AUD 3.02 billion, compared with a revised surplus of AUD 1.38 billion in April and well below market expectations of a AUD 2.18 billion surplus. This shortfall represented the biggest monthly trade deficit since late 2015.

The deterioration was driven primarily by a 6.9% month‑over‑month decline in exports after April’s surge. Non‑monetary gold exports fell by 35%, while iron‑ore exports slipped 9%, underscoring the volatility of Australia’s commodity‑driven trade flows. Imports rose 2.6% month‑over‑month, led by stronger purchases of motor vehicles, aircraft and telecommunications equipment. Import volumes were up 0.2% month‑over‑month in April.

Goods Trade Balance (AUD)
+1.38B
-3.02B
+2.18B

Exports (MoM)
7.2%
-6.9%

Imports (MoM)
0.2%
2.6%

Non-Monetary Gold Exports

-35%

Iron Ore Exports

-9%

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