Fed: Trade deficit blows out to second-biggest ever in July

AAP General News (Australia)
08-31-2004
Fed: Trade deficit blows out to second-biggest ever in July

Australia has recorded its second-highest trade deficit on record after higher petrol
prices and a dip in exports helped the gap blow out by half a billion dollars.

Official figures show Australia imported $2.75 billion more than it exported in July
-- a blow for the government on the third day of an election campaign being fought around
economic credibility.

The July deficit was the biggest plunge into the red since December 2002 and only a
touch below that record deficit of $2.84 billion.

But higher interest rates are still on the cards before Christmas after separate figures
showed home borrowing continued to rise at a cracking pace, although it has passed its
peak.

GDP data out tomorrow is tipped to show the economy expanded 0.9 per cent in the second
quarter, from 0.2 per cent in March, taking annual growth to 3.8 per cent.

AAP RTV kmh/sw/rp

KEYWORD: ECONOMY (CANBERRA)

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