Canada’s November merchandise trade deficit widened as exports fell the most since January 2012, on falling crude oil prices.
Figures released this morning by Statistics Canada show the deficit of $644 million followed an October reading that was revised to a $327-million deficit from a $99-million surplus. Economists surveyed by Bloomberg forecast a $200-million November shortfall, based on the median of 14 forecasts. The widest deficit prediction was $400 million.
Plunging prices for oil, Canada’s top export, may curb the value of shipments abroad this year even as manufacturers benefit from faster U.S. growth and a lower currency. Bank of Canada Governor Stephen Poloz said last month growth may be reduced if low prices persist, and economists surveyed by Bloomberg have cut their export forecast for this year.
The nation's number crunchers also said Canada’s total exports fell 3.5% to $43.3 billion, the biggest percentage decline since January 2012. Sales fell in nine of 11 categories, including an 8.3% decline to $5 billion for metal and non-metallic minerals.
Imports fell 2.7% to $43.9 billion, the first decline since June, StatsCan added.
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