Bloomberg reported that Japan's strongest earthquake, tsunami and nuclear crisis may cut Australian exports by AUD 2 billion this fiscal year on reduced orders for coal and iron ore.
Australia's Treasury said that demand from Japan will be slower in the short term, before recovering to support prices of non farm commodities.
Mr Glenn Stevens governor of Reserve Bank of Australia said in February that Australia's global terms of trade are at their highest level since the 1950s. The nation's mineral and energy commodity exports are forecast to be AUD 185.6 billion in the year to June 30th 2010.
Treasurer Mr Wayne Swan said that Australia, the world's biggest shipper of coal and iron ore, is still determined to bring its budget back to surplus in 2012-13. The government forecasts a AUD 3.1 billion budget surplus for that year, even as a series of disasters adds billions in emergency spending.
He added that "The tragic events in Japan, together with the impact of floods and Cyclone Yasi at home, will clearly mean revenues take a substantial hit in the near term. So we'll be framing the budget in really tough circumstances this year, but we're determined to bring the budget back to surplus as planned."
( source: www.steelguru.com )