The British Broadcasting Corporation reported recently that Australia’s trade deficit more than doubled to A$2.26bn (£1.2b; $1.96bn) in September, according to data showed.
Exports increased just one per cent in the month, while imports were up to six per cent as Australia brought in more fuel.
The deficit, a balance of goods and services, increased a lot more than market expectations of A$1.95bn and compared to a revised deficit of A$1.013bn in July. Decreasing prices of key commodities like iron ore is believed to be responsible for the jump.
“The trade deficit for September came in worse than expected with falling commodity prices clearly weighing on export values,” said AMP Capital chief economist Shane Oliver.
Export income in Australia, home to some of the world’s biggest miners like BHP Billiton and Rio Tinto have been impacted by the slump in prices.
The price of iron ore is down to 40per cent this year, while thermal coal prices are on the brink near five-year lows of A$63 a tonne on excessive supply in the market and slower demand from China.