Fed: Service exports outstripped by imports for 2nd year running

AAP General News (Australia)
04-22-2004
Fed: Service exports outstripped by imports for 2nd year running

CANBERRA, April 22 AAP - Australian service exports grew at a subdued rate and were
outstripped by imports, new figures released today showed.

The Department of Foreign Affairs and Trade said service exports rose 0.7 per cent
to $32.5 billion, well below the 10 year average growth rate of seven per cent.

But service imports climbed 0.9 per cent to $32.9 billion, leaving a deficit on services
trade of $438 million.

It was the second consecutive year of stifled service exports, after they dropped by
four per cent in 2001-02.

Travel continues to be the single largest service export, accounting for 47 per cent,
or $15.4 billion, of total exports.

Britain was the most important tourist export market for Australia, accounting for
$1.97 billion (down 0.2 per cent), followed by Japan at $1.91 billion (down 2.6 per cent).

Other major tourist sources included the United States (down 3.5 per cent to $1.3 billion),
New Zealand (down 2.1 per cent to $1.2 billion) and Singapore (down 6.3 per cent to $801
million).

Travel service imports accounted for 33 per cent of all service imports, with inbound
tourism worth $9.4 billion and education-related travel worth $4.9 billion.

One key area to grow strongly was education services which grew eight per cent to $5.2
billion during 2002-03.

Education is now Australia's sixth largest single export, with the industry focused
on the Asia-Pacific region.

Australia's biggest services market continues to be the US, worth $5.2 billion, followed
by Britain at $3.7 billion and Japan at $3.4 billion.

NSW accounts for 44.8 per cent of all service exports and 46 per cent of imports, while
Victoria was next with 22.5 per cent of exports and 24.6 per cent of imports.

AAP sw/drp/tnf

KEYWORD: TRADE

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