Mining boom fuels trade surplus

CHINA and India's demand for Australian mining riches has kept the country's trade surplus at $1.8 billion. Official figures released yesterday showed the trade surplus for July was broadly unchanged despite a 0.9 per cent drop in the value of exports - much of it a result of the delayed recovery from the Queensland floods, which hit coal production. The fall was counterbalanced by a 0.9 per cent drop in the value of imports. It is the fifth consecutive month Australia has recorded a trade surplus, where the value of exports outstrips the cost of imports. Most economists expect the gap to widen as exports increase above the $26.4 billion recorded in July, with commodity prices forecast to remain at record highs. BY STEPHEN MCMAHON Herald Sun Read more...