Australia’s trade surplus for goods fell to a two-year low in November hit by a slump in exports to top trading partner China, which imposed a number of restrictions in an escalating trade dispute.
Preliminary data from the Australian Bureau of Statistics (ABS) on Wednesday showed goods trade surplus slipped to A$1.9 billion ($1.43 billion) in November from A$4.7 billion in October.
This is the first time since November 2018 that the goods trade surplus has dropped below the A$2 billion mark.
The drop was led by a A$1.2 billion, or 10%, decrease in exports to China combined with an A$889 million, or 11%, increase in imports from the Asian heavyweight, the ABS said.
China has put a stop on Australian coal while imposing hefty tariffs on a range of farm products including barley, beef, lobsters and wine, angered by Australia’s calls for a global inquiry into the origins of the coronavirus.
Preliminary trade data does not include services. The ABS will release the final trade estimate for November on Jan. 7.