A surge in commodity exports has revived economic prospects for 2006 and cut Australia’s trade deficit in half. Exports made a record high of $16.3 billion in December, caused mainly by increased mineral and metal exports and helped by a recovery in rural exports.
Australia’s trade deficit shrank to $1.2 billion reverting from high levels of $2.5 billion in November. The annual deficit reduced to $20 billion last year, from $25 billion in 2004. Japan remains Australian largesty export destination, with China our largest source of imports.