Post by
Torontojay on Jul 07, 2023 7:39am
Canada posted a large trade deficit for May
Canada posted a trade deficit of CAD 3.44 billion in May of 2023, shifting from a downwardly revised surplus of CAD 0.89 billion in the prior month and against market forecasts of a CAD 1.15 billion surplus. This was the largest deficit since October 2020, as exports slumped by 3.8% over a month to a near 1-1/2-year low of CAD 61.5 billion, mainly due to lower shipments of energy products (-7.3%), notably crude oil (-8.3%) and coal (-14.5%) in large part because of lower prices. Exports also fell sharply for farm, fishing and intermediate food products (-13.4%), especially for wheat and canola. Conversely, imports rose 3% to a four-month high of CAD 65 billion, boosted by acquisitions of metal and non-metallic mineral products (+12.3%), largely unwrought gold, silver, and platinum group metals and their alloys (+42.8%). Purchases also increased solidly for motor vehicles and parts (+4.5%), namely engines and parts (+6.9%) and passenger cars and light trucks (+4.6%).
Comment by
meritmat on Jul 07, 2023 8:25am
I'm guessing the lower oil shipments are due to turnaround season in the oil sands
Comment by
PabloLafortune on Jul 07, 2023 11:39am
You forgot to mention the most important part: the devastating impact this will have on the C$.
Comment by
Torontojay on Jul 07, 2023 12:18pm
And the impact it would have on gdp in this country. No more immigration, the country would implode without energy and the oil sands.
Comment by
Experienced on Jul 07, 2023 1:40pm
Pablo....yep and a lower dollar means more inflation since we get most of our foodstuff from the US and also finished products for manufacturing. Agree that there will be intense pressure on the BOC to raise interest rates some more.
Comment by
cosha94 on Jul 07, 2023 9:00am
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