Australia Trade Surplus Hits 18-Month High in July

Australia's trade surplus surged to AUD 7.31 billion in July 2025, significantly exceeding market expectations and marking the highest surplus since February 2024. This increase was propelled by a 3.3% month-over-month rise in exports to a 21-month high of AUD 46.02 billion, driven primarily by strong demand for commodities such as metal ores, coal, mineral fuels, and metals in key markets including China, Japan, Europe, the U.S., and South Korea. Imports declined by 1.3%, largely due to reduced demand for non-monetary gold, which further supported the widening trade surplus. The robust export performance signals a recovery in overseas demand and is expected to positively influence sectors like mining and agriculture, as well as bolster investor confidence. This trade data offers a favorable outlook for Australia's economic growth following a period of subdued export activity that had previously hampered GDP expansion. Overall, the stronger-than-anticipated trade surplus could also impact longer-term trade and economic policy considerations.