Australia Logs Biggest Trade Deficit Since 2015

Australia unexpectedly posted a trade deficit of AUD 3.02 billion in May 2026, shifting from a downwardly revised AUD 1.38 billion surplus in the previous month and defying market expectations of an AUD 2.2 billion surplus. It was the second trade deficit so far this year and the largest since December 2015, as exports fell while imports rose. Exports dropped 6.9% month-on-month to a four-month low of AUD 43.61 billion, reversing a 7.2% increase in April, primarily weighed down by non-monetary gold and metal ores and minerals. Meanwhile, imports grew 2.6% month-on-month to a record peak of AUD 46.63 billion, accelerating from a downwardly revised 0.2% increase in April, reflecting stronger domestic demand, led by cars, aircraft and telecoms.

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