A recorded trade surplus witnessed by Australian exports may seem to be taking the economy upwards but, experts suggest that it may not last long.
If we go by the ideal trajectory towards trade taken in account by US President Donald Trump, that uses a country’s exports overtaking imports as the litmus for success, then Australia is way ahead of the curve. The Australian export revenue boomed. China becoming the biggest market for Australian iron ore with the prices soaring above $100 a ton, the country has been zooming ahead. But in spite of this prevalent up turn, the country could experience the weakest fiscal year, says a recent report.
Australia had a 1.6% increase in its immigrant population, which could also be largely responsible for its annualized growth of just 1.2%. Without this in pour, any success to the economy would’ve been impossible to attain. There could be a number of impediments that would be road bumps for the economy, caution ahead!
Trade analysts say that Australia got a kitty full from China, owing to the deadly dam disaster in Brazil. As the Chinese economy, at its peak infrastructural period, continues to build and construct, Australian iron ore will continue to be invaluable to its economy.
Its all good news up till now, but the glitch here could be introduced via the incoming news of Brazil’s Vale SA, about to get kickstarted again, making a comeback post the disaster. This could really spell doom for Australia if the prices go back into the lower brackets.