Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Canada racks up record trade deficit as energy exports slump

Published 2019-03-06, 11:05 a/m
© Reuters. Canada racks up record trade deficit as energy exports slump
CL
-

OTTAWA, March 6 (Reuters) - Canada racked up a record trade deficit of C$4.59 billion ($3.43 billion) in December as the value of exports slumped by the most in over a year due to lower crude oil prices, Statistics Canada said on Wednesday.

The deficit - much wider than the C$2.8 billion shortfall predicted by analysts in a Reuters poll - is the latest in a string of disappointing Canadian data. The previous largest monthly trade deficit was the C$3.99 billion gap recorded in September 2016.

The Bank of Canada is due to announce its latest interest rate decision at 9 a.m. Eastern (1400 GMT) on Wednesday and markets expect it to remain on the sidelines. The central bank says the pace of future hikes will depend heavily on data.

Exports fell by 3.8 percent in December - the largest monthly drop since a 4.5 percent plunge in July 2017 - as weak prices slashed the value of crude shipments by 28.7 percent. Canada is a major oil exporter.

Imports increased by 1.6 percent, the first gain since May, on higher imports of energy products.

Canada sent 72.8 percent of all its goods exports to the United States in December. Exports to the United States dropped by 3.6 percent while imports slipped 2.4 percent and as a result, the bilateral trade surplus shrank to C$1.78 billion from C$2.25 billion in November.

Publication of the December data was delayed from Feb 7 due to a partial U.S. government shutdown.

($1=$1.34 Canadian)

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Graphic - Canada economic snapshot

http://tmsnrt.rs/2e8hNWV

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.