Canada’s trade deficit widened again in September

Canada's trade deficit widened again in September

Canada’s total imports in September rose 4.7 percent to $ 47.6 billion. Whether the price level or the number of imported goods are a huge rise. The average import price increased by 2.4%, while imports increased by 2.3%. Exports increased by 0.1% to $ 43.5 billion, with the average export price increasing by 0.9% and the total volume of exports fell by 0.8%. The total trade deficit increased by more than 100% compared to $ 2 billion in August.

After a 4.7% decline in exports in the second quarter, Canada’s total exports in the third quarter increased by 5.0% to $ 130.3 billion. This is the strongest export rebound since the beginning of 2014. However, the total import volume increased by 2.4% in the third quarter to Rmb138.5 billion. The overall remains the state of the trade deficit. But the extent of the deficit compared to the second quarter record of 11.1 billion Canadian dollars has come down.

September the main reason for the huge trade deficit comes from industrial equipment, parts and other departments. The department’s imports in the 8 consecutive months after the decline in September suddenly increased to 71.4%. From a single project point of view, from South Korea to Newfoundland and Labrador crude oil project related equipment is the largest cost. Excluding the impact of industrial equipment, in fact Canada’s imports in other sectors in September fell by 1.6%.

The more gratifying data in September was that trading volume between Canada and the United States increased significantly. Canada and the United States outside the total trade volume increased by 15.9% to a record $ 18 billion. One of the most growing trading partners is Korea. And the total trade with the UK some decline, offset by a portion of trade growth.

Canada’s largest US trade partner with its largest trading partner fell 1.1 percent to $ 29.7 billion in September, while total exports fell 0.6 percent to $ 32.4 billion.

Overall, the amount of imports in Canada after the one-time imports in Newfoundland, in fact, in all sectors have a certain decline. While exports are slowly rising, but the total volume of exports is still a downward trend. The overall performance of foreign trade data is gratifying, but there are some signs of concern to the government and policymakers. The same is the weekly labor market data show a similar state. This is invisible for the Bank of Canada. The Bank of Canada has cut interest rates last year to stimulate its economy. If there is no more effect, then the central bank is likely to consider further interest rate cuts.

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