Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
Canada trade deficit doubles up, as softer crude price hurts exportsFriday, January 11, 2019 > 09:42:56
On Tuesday, the 8th of January, 2019, the Statistics Canada revealed that, the Canada’s trade deficit had doubled up on November, 2018, as a weak crude oil price alongside, declined demand for the chemicals came in to play, dragging down the Canadian export’s figures four months in a row. While the forecasted deficit was residing at 1.95 billion Canadian Dollar, the actual deficit jumped up to 2.06 billion Canadian Dollar ($1.55 billion). As an immediate reaction to the data, the chief economist of Export Development Canada, Peter Hall said in a phone call, “It’s really not a great news month”. As the Canadian economy had been largely depended upon crude oil since as early as 2001s, the exports on November, 2018, plunged by 2.9 percent, while the value of crude had soared by 17.7 percent.
The BoC (Bank of Canada) had expressed grave concerns regarding the subject matter. The Canadian exports of industrial and basic chemical, alongside, rubber and plastic products had dropped over 7.5 percent, as shipment of refined oil and lubricants had deduced substantially on lower US demand, while US oil inventories had been oozing with a record production.
Citing lack of US interest on Canadian petroleum and chemicals, the chief economist of Export Development Canada, Peter Hall commented, “Purchasing managers in the United States remain upbeat but for some reason they’re not buying those key inputs to the industrial process.
So, we’re scratching our heads a little bit on that one.”