Aussie trade deficit soars

Widening deficit: An oil tanker passing under Sydney Harbour Bridge. Slumping commodity prices has blown Australia’s trade deficit to a six-month high. – AFP

SYDNEY: Australia’s trade deficit blew out to a six-month high in December as prices for key resource exports tumbled at the end of a torrid quarter that dealt a hefty blow to national income.

The outlook was no more cheery with the latest plunge in oil prices rattling world markets and prompting the Reserve Bank of Australia (RBA) to concede a rate cut might be needed to stem any lasting economic damage.