4 December 2007
Record Trade Deficit in October
Trade deficit figures released yesterday underline the need for a fresh approach to export policies and programs.
The trade deficit for the month of October was $2.98 billion, the largest monthly trade deficit on record, easily eclipsing the previous record of $2.4 billion set in November 2004.
This has brought the trade deficit in the year to October 2007 to $16.9 billion, up from $12.9 billion for the equivalent period last year.
Export growth rates have stagnated in recent years and the trade deficit has blown out.
A fresh approach is needed.
During the election campaign Labor announced plans to lift Australia’s international competitiveness and reinvigorate export growth.
In particular the Export Market Development Grants scheme will be better funded and its eligibility criteria broadened to foster more exporting businesses.
The Government has also recognised the critical need to lift productivity growth and export growth, and has announced ambitious plans to kick start Australia’s flagging productivity growth rates.
