No. 3 - Department of Treasury - The Western Australian Government

Western Australian Economic Summary2006 No.3Table 11MERCHANDISE EXPORTSGrowth (%), June Quarter2006% Change Over:Change: ChangeQuarter Year*NSW -4.2 3.1Vic 0.3 -0.7Qld -4.3 -3.7WA 6.8 -2.2SA 17.2 14.6Tas -3.9 -13.0Aust 1.6 1.4*Past quarter on same quarter ayear earlierSource: ABS Cat. 5206.0While export volumes are weak, the high prices of most of the State’s keyresource commodities have resulted in the nominal value of exportsgrowing strongly – up 32.5% in the September quarter 2006 when comparedto the corresponding period a year earlier. The value of Western Australia’sexports reached $51.5 billion over the year to September 2006, up 26.1% onthe 12 month ending September 2005 (also see chart above). In the year toSeptember 2006 the State accounted for 32.3% of the value of nationalexports, with Western Australia’s overseas trade surplus of $31.3 billioncontrasting to Australia’s trade deficit of $12.3 billion.The value of gold exported recorded the largest increase over the threemonths to September 2006, up $1,007.6 million (or 68.8%) when compared tothe same period a year earlier. In volume terms, gold exports also increased(by 18.8%) in the quarter. After accounting for the increased import of goldinto the State (for refining and re-export 1 ), the net value of gold exportedincreased by $609.2 million (or 74.1%) over the period.Iron ore exports are rising in both value and volume terms as a result ofhigher prices and numerous capacity expansions and mine developmentsunder way or recently completed. The value of iron ore exports increased by$965.3 million (or 32.4%) over the September quarter 2006 compared to thesame period a year earlier, and the volume of iron ore exported over theperiod was 8.8% higher than the September quarter 2005.Figure 35GROWTH IN EXPORTS*3 Months to Sep 2006 on 3 Months to Sep 2005GoldIron OreConfidential ItemsNickelPetroleum ProductsWheatBase Metal OresCopper OreInorganic Chemicals$M $200M $400M $600M $800M $1,000M $1,200MSource: ABS: * Commodities with changes greater than $53 million.1 As a result of a restructuring of Australia’s gold refining industry in 2002, gold fromother Australian states and territories is now refined in Western Australia, beforebeing exported. Similarly, gold is also imported into Western Australia from other(predominantly South East Asian) countries for refining, before being re-exported. Assuch, export figures for gold for Western Australia can often be larger than theState’s own level of gold production (due to re-exports of gold products).50 Department of Treasury and Finance