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Commodity prices have rebounded recently, though, which has revitalized exports and swelled government tax coffers. Iron ore, the steelmaking ingredient that is Australia's biggest export, roared into 2017, with prices recently rising to a 2 1/2 year high on optimism about Chinese demand. China is Australia's biggest trading partner. Still, the economy may not be out of the woods. Mining executives are wary that coal and iron-ore prices, which surged last year due to renewed demand in China and lower Chinese production, have risen too far too fast. Australia's top finance official, Treasury Secretary John Fraser, said Wednesday the outlook for Australia's economy was still "finely balanced, " despite a strong pickup in prices for key exports like iron ore. While there were positive signs in the global economy, it was too early to assess what the impact of U.S. President Donald Trump's protectionist policies might be, he added. "Australia's economy is still working through a complex transition away from mining investment and towards broader growth, in an uncertain international economic climate," Mr. Fraser told lawmakers during budget oversight hearings. Australia's plan to shift investment away from mining to focus more on other industries like services has been slow to materialize.