Canada posts $1.2B merchandise trade surplus for October: Statistics Canada
OTTAWA –
Canada’s merchandise commerce surplus grew to $1.2 billion in October as a depreciation within the Canadian greenback helped raise the worth of each exports and imports, Statistics Canada stated Tuesday.
The end result in contrast with a revised surplus of $607 million in September in contrast with its earlier studying of a surplus of $1.1 billion.
Statistics Canada stated whole exports rose 1.5 per cent to $67 billion in October as exports of shopper items gained 9.7 per cent to $7.7 billion, lifted increased by a 20.7 per cent acquire in pharmaceutical merchandise.
Exports of farm, fishing and intermediate meals merchandise elevated 10.2 per cent in October to a document $5.5 billion, boosted by exports of canola and wheat.
Meanwhile, whole imports rose 0.6 per cent to $65.8 billion in October as imports of motor autos and components gained 4.6 per cent to $10.3 billion.
Statistics Canada stated the common worth of the loonie in October fell 2.1 cents US in contrast with September, noting that when the Canadian greenback falls towards the U.S. greenback, transformed month-to-month commerce values in Canadian {dollars} are increased.
When expressed in U.S {dollars}, the company stated Canadian exports fell 1.3 per cent in October and imports dropped 2.2 per cent.
In quantity phrases, whole exports rose 0.1 per cent in October, whereas imports in quantity phrases fell 0.9 per cent.
CIBC senior economist Andrew Grantham stated exports proceed to profit from sturdy demand for Canada’s assets, though the slowing international financial system may very well be beginning to weigh on different areas of commerce.
“A second consecutive decline in import volumes means that net trade will likely be a big positive contributor to growth again in Q4, although it is likely a poor sign for domestic demand and further evidence that higher interest rates are starting to bite the economy,” Grantham wrote in a report.
The commerce report got here forward of the Bank of Canada’s rate of interest determination on Wednesday.
The central financial institution is anticipated by economists to lift its key rate of interest goal because it continues its battle to deliver inflation again to its purpose of two per cent, however forecasters are break up of their expectations on the subject of the scale of the hike.
The Bank of Canada has raised its goal for the in a single day price six occasions this yr up to now taking it from 0.25 per cent in the beginning of the yr to three.75 per cent in October, a transfer that has pushed the price of borrowing increased for Canadians.
In a separate report, Statistics Canada stated the nation’s worldwide commerce in providers deficit elevated to $1.9 billion in October in contrast with $1.8 billion in September. Imports of providers gained 2.0 per cent to $15.8 billion, whereas exports of providers rose 1.6 per cent to $13.9 billion.
When worldwide commerce in items and providers are mixed, Statistics Canada stated the nation’s commerce deficit with the world was $726 million in October in contrast with $1.2 billion in September.
This report by The Canadian Press was first printed Dec. 6, 2022.
