Australia recorded an unexpected trade deficit in March, marking the country’s first monthly trade gap in more than seven years as exports weakened and imports surged on strong demand for technology equipment and fuel products.
Data released by the Australian Bureau of Statistics (ABS) on Thursday showed Australia posted a trade deficit of A$1.84 billion in March, significantly below market expectations for a A$4.25 billion surplus.
The result also represented a sharp reversal from the revised $5.02 billion surplus recorded in February and marked the first trade deficit since December 2017.
Australia’s exports fell 2.7% month-on-month in March to $43.93 billion, reversing a downwardly revised 4.2% increase in February.
The decline was driven by weaker shipments of metal ores, coal and sugar, amid softer commodity export volumes during the month.
However, mineral fuel exports rose 4.6%, partially offsetting broader weakness across the export sector.
Meanwhile, imports surged 14.1% month-on-month, reversing a revised 2.7% decline in February as domestic demand strengthened sharply.
The increase was led primarily by a surge in capital goods imports, particularly computing and data-processing equipment.
Imports of automated data processing equipment jumped 204% in March from the previous month amid growing investment linked to artificial intelligence infrastructure and technology expansion.
Australia also increased imports of crude oil and gasoline following a major fire and operational outage at Viva Energy’s key refinery in Victoria, which disrupted domestic fuel production and boosted reliance on overseas supply.
